Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 25, 2020 | Oct. 23, 2020 | Mar. 27, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 25, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-32431 | ||
Entity Registrant Name | DOLBY LABORATORIES, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 90-0199783 | ||
Entity Address, Address Line One | 1275 Market Street | ||
Entity Address, City or Town | San Francisco | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94103-1410 | ||
City Area Code | 415 | ||
Local Phone Number | 558-0200 | ||
Title of 12(b) Security | Class A common stock, $0.001 par value | ||
Trading Symbol | DLB | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 3.1 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Definitive Proxy Statement to be filed with the Commission pursuant to Regulation 14A in connection with the registrant’s 2021 Annual Meeting of Stockholders, to be filed subsequent to the date hereof, are incorporated by reference into Part III of this Report. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days after the conclusion of the registrant’s fiscal year ended September 25, 2020. Except with respect to information specifically incorporated by reference in this Form 10-K, the Definitive Proxy Statement is not deemed to be filed as part of this Form 10-K. | ||
Entity Central Index Key | 0001308547 | ||
Current Fiscal Year End Date | --09-25 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 64,219,912 | ||
Common Class B [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 36,128,720 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 25, 2020 | Sep. 27, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,071,876 | $ 797,210 |
Restricted cash | 8,103 | 8,383 |
Short-term investments | 46,948 | 119,146 |
Accounts receivable, net of allowance for doubtful accounts of $15,908 and $9,775 | 180,340 | 189,115 |
Contract with Customer, Asset, Net | 161,357 | 195,651 |
Inventories | 25,550 | 32,331 |
Prepaid expenses and other current assets | 53,022 | 39,704 |
Total current assets | 1,547,196 | 1,381,540 |
Long-term investments | 52,149 | 179,587 |
Property, plant and equipment, net | 541,963 | 537,432 |
Operating lease right-of-use assets | 76,515 | 0 |
Intangible assets, net | 152,431 | 180,891 |
Goodwill | 336,945 | 334,829 |
Other non-current assets | 91,245 | 93,395 |
Total assets | 2,917,325 | 2,821,749 |
Current liabilities: | ||
Accounts payable | 12,617 | 15,212 |
Accrued liabilities | 219,974 | 268,144 |
Income taxes payable | 3,260 | 3,506 |
Contract liabilities | 15,436 | 19,991 |
Operating lease liabilities | 15,822 | 0 |
Total current liabilities | 267,109 | 306,853 |
Non-current contract liabilities | 24,342 | 24,404 |
Non-current operating lease liabilities | 65,315 | 0 |
Other non-current liabilities | 122,154 | 177,462 |
Total liabilities | 478,920 | 508,719 |
Stockholders' equity: | ||
Retained earnings | 2,443,138 | 2,327,877 |
Accumulated other comprehensive income | (10,594) | (20,625) |
Total stockholders’ equity – Dolby Laboratories, Inc. | 2,432,643 | 2,307,351 |
Controlling interest | 5,762 | 5,679 |
Total stockholders’ equity | 2,438,405 | 2,313,030 |
Total liabilities and stockholders’ equity | 2,917,325 | 2,821,749 |
Deferred Income Tax Assets, Net | 118,881 | 114,075 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 58 | 58 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | $ 41 | $ 41 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Thousands | Sep. 25, 2020USD ($)vote$ / sharesshares | Sep. 27, 2019USD ($)vote$ / sharesshares |
Allowance for doubtful accounts | $ | $ 15,908 | $ 9,775 |
Class A Common Stock [Member] | ||
Common stock, par value (usd per share) | $ / shares | $ 0.001 | $ 0.001 |
Common stock voting right per share (votes per share) | vote | 1 | 1 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 64,167,725 | 63,911,270 |
Common Stock, Shares, Outstanding | 64,167,725 | 63,911,270 |
Class B Common Stock [Member] | ||
Common stock, par value (usd per share) | $ / shares | $ 0.001 | $ 0.001 |
Common stock voting right per share (votes per share) | vote | 10 | 10 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 36,128,720 | 36,229,820 |
Common Stock, Shares, Outstanding | 36,128,720 | 36,229,820 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Revenue: | |||
Revenue | $ 1,161,792 | $ 1,241,620 | |
Total revenue | 1,161,792 | 1,241,620 | $ 1,054,600 |
Cost of revenue: | |||
Total cost of revenue | 146,498 | 160,854 | 127,562 |
Gross margin | 1,015,294 | 1,080,766 | 927,038 |
Operating expenses: | |||
Research and development | 239,045 | 237,871 | 236,794 |
Sales and marketing | 335,933 | 343,835 | 309,762 |
General and administrative | 219,753 | 205,425 | 197,423 |
Restructuring charges | (1,821) | (36,558) | 446 |
Total operating expenses | 796,552 | 823,689 | 743,533 |
Operating income | 218,742 | 257,077 | 183,505 |
Other income/expense: | |||
Interest income | 12,725 | 24,919 | 18,970 |
Interest expense | (186) | (170) | (198) |
Other income/(expense), net | 8,434 | 481 | (5,903) |
Total other income | 20,973 | 25,230 | 12,869 |
Income before income taxes | 239,715 | 282,307 | 196,374 |
Provision for income taxes | (8,096) | (26,802) | (154,069) |
Net income including controlling interest | 231,619 | 255,505 | 42,305 |
Less: net (income) attributable to controlling interest | (256) | (354) | (559) |
Net income attributable to Dolby Laboratories, Inc. | $ 231,363 | $ 255,151 | $ 41,746 |
Net Income Per Share: | |||
Basic (usd per share) | $ 2.30 | $ 2.51 | $ 0.40 |
Diluted (usd per share) | $ 2.25 | $ 2.44 | $ 0.39 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||
Basic (shares) | 100,564 | 101,629 | 103,377 |
Diluted (shares) | 102,944 | 104,572 | 106,978 |
Related party rent expense: | |||
Included in operating expenses | $ 126 | $ 16,360 | $ 3,483 |
Included in net income attributable to controlling interest | $ 455 | $ 572 | $ 712 |
Cash dividend declared per common share | $ 0.88 | $ 0.79 | $ 0.67 |
Cash dividend paid per common share | $ 0.88 | $ 0.76 | $ 0.64 |
Licensing | |||
Revenue: | |||
Revenue | $ 1,078,577 | $ 1,107,280 | $ 940,777 |
Cost of revenue: | |||
Cost of revenue | 50,822 | 57,531 | 42,583 |
Products and services | |||
Revenue: | |||
Revenue | 83,215 | 134,340 | 113,823 |
Cost of revenue: | |||
Cost of revenue | $ 95,676 | $ 103,323 | $ 84,979 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income including controlling interest | $ 231,619 | $ 255,505 | $ 42,305 |
Other comprehensive income/(loss): | |||
Currency translation adjustments, net of tax | 7,552 | (10,166) | (5,578) |
Unrealized gains/(losses) on investments, net of tax | (1,380) | 5,146 | (2,571) |
Unrealized gains on cash flow hedges, net of tax | 3,969 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 10,141 | (5,020) | (8,149) |
Comprehensive income | 241,760 | 250,485 | 34,156 |
Less: comprehensive (income) attributable to controlling interest | (366) | (127) | (489) |
Comprehensive income attributable to Dolby Laboratories, Inc. | $ 241,394 | $ 250,358 | $ 33,667 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income Statement (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Currency translation tax | $ 22 | $ (439) | $ 106 |
Unrealized gains/(losses) on investments,tax | (926) | 58 | 89 |
Unrealized gains on cash flow hedges, tax | $ (407) | $ 0 | $ 0 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Total | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total Dolby Laboratories,Inc.[Member] | Controlling Interest [Member] | Common Class A [Member]Common Stock [Member] | Common Class B [Member]Common Stock [Member] |
Beginning balance, shares at Sep. 29, 2017 | 59,282,000 | 42,874,000 | ||||||
Beginning balance, value at Sep. 29, 2017 | $ 2,398,727 | $ 61,331 | $ 2,337,948 | $ (7,753) | $ 2,391,627 | $ 7,100 | $ 58 | $ 43 |
Net income | 42,305 | 41,746 | 41,746 | 559 | ||||
Translation adjustments, net of taxes | (5,578) | (8,079) | (8,079) | (70) | ||||
Other comprehensive (loss), net of tax | (8,149) | |||||||
Distributions to controlling interest | (1,022) | (1,022) | ||||||
Stock-based compensation expense | 71,249 | 71,249 | 71,249 | |||||
Repurchase of common stock, shares | (2,381,000) | |||||||
Repurchase of common stock, value | (150,470) | (150,468) | (150,470) | $ (2) | ||||
Cash dividends declared and paid on common stock | (66,155) | (66,155) | (66,155) | |||||
Class A common stock issued under employee stock plans, shares | 3,823,000 | |||||||
Class A common stock issued under employee stock plans, value | 106,162 | 106,159 | 106,162 | $ 3 | ||||
Shares repurchased for tax witholdings on vesting of restricted stock, shares | 358,000 | |||||||
Shares repurchased for tax witholdings on vesting of restricted stock, value | (22,144) | (22,144) | (22,144) | |||||
Transfer of Class B common stock to Class A common stock, shares | (3,613,000) | 3,613,000 | ||||||
Transfer of Class B common stock to Class A common stock, value | $ (2) | $ 2 | ||||||
Ending balance, shares at Sep. 28, 2018 | 63,979,000 | 39,261,000 | ||||||
Ending balance, value at Sep. 28, 2018 | 2,370,503 | 66,127 | 2,313,539 | (15,832) | 2,363,936 | 6,567 | $ 61 | $ 41 |
Net income | 255,505 | 255,151 | 255,151 | 354 | ||||
Translation adjustments, net of taxes | (10,166) | (4,793) | (4,793) | (227) | ||||
Other comprehensive (loss), net of tax | (5,020) | |||||||
Distributions to controlling interest | (1,015) | (1,015) | ||||||
Stock-based compensation expense | 76,580 | 76,580 | 76,580 | |||||
Repurchase of common stock, shares | (5,268,000) | |||||||
Repurchase of common stock, value | (340,585) | (177,264) | (163,317) | (340,585) | $ (4) | |||
Cash dividends declared and paid on common stock | (77,496) | (77,496) | (77,496) | |||||
Class A common stock issued under employee stock plans, shares | 2,514,000 | |||||||
Class A common stock issued under employee stock plans, value | 57,346 | 57,345 | 57,346 | $ 1 | ||||
Shares repurchased for tax witholdings on vesting of restricted stock, shares | 345,000 | |||||||
Shares repurchased for tax witholdings on vesting of restricted stock, value | (22,788) | (22,788) | (22,788) | |||||
Transfer of Class B common stock to Class A common stock, shares | (3,031,000) | 3,031,000 | ||||||
Ending balance, shares at Sep. 27, 2019 | 63,911,000 | 36,230,000 | ||||||
Ending balance, value at Sep. 27, 2019 | 2,313,030 | 0 | 2,327,877 | (20,625) | 2,307,351 | 5,679 | $ 58 | $ 41 |
Net income | 231,619 | 231,363 | 231,363 | 256 | ||||
Translation adjustments, net of taxes | 7,552 | 10,031 | 10,031 | 110 | ||||
Other comprehensive (loss), net of tax | 10,141 | |||||||
Distributions to controlling interest | (283) | (283) | ||||||
Stock-based compensation expense | $ 86,628 | 86,628 | 86,628 | |||||
Repurchase of common stock, shares | (2,564,559) | (2,564,000) | ||||||
Repurchase of common stock, value | $ (173,742) | (146,218) | (27,521) | (173,742) | $ (3) | |||
Cash dividends declared and paid on common stock | (88,581) | (88,581) | (88,581) | |||||
Class A common stock issued under employee stock plans, shares | 3,063,000 | |||||||
Class A common stock issued under employee stock plans, value | 82,658 | 82,655 | 82,658 | $ 3 | ||||
Shares repurchased for tax witholdings on vesting of restricted stock, shares | 343,000 | |||||||
Shares repurchased for tax witholdings on vesting of restricted stock, value | (23,065) | (23,065) | (23,065) | |||||
Transfer of Class B common stock to Class A common stock, shares | (101,000) | 101,000 | ||||||
Ending balance, shares at Sep. 25, 2020 | 64,168,000 | 36,129,000 | ||||||
Ending balance, value at Sep. 25, 2020 | $ 2,438,405 | $ 0 | $ 2,443,138 | $ (10,594) | $ 2,432,643 | $ 5,762 | $ 58 | $ 41 |
Consolidated Statements Of St_2
Consolidated Statements Of Stockholders' Equity And Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Currency translation tax | $ 22 | $ (439) | $ 106 |
Unrealized gains/(losses) on investments,tax | $ (926) | $ 58 | $ 89 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Operating activities: | |||
Net income including controlling interest | $ 231,619 | $ 255,505 | $ 42,305 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 90,878 | 85,123 | 81,283 |
Stock-based compensation | 86,628 | 76,580 | 71,249 |
Amortization of premium on investments | 800 | 358 | 2,473 |
Provision for doubtful accounts | 7,689 | 4,523 | 2,413 |
Deferred income taxes | (5,274) | (40,191) | 61,059 |
Restructuring charge for exit of leased facility | 1,640 | 33,251 | 0 |
Other non-cash items affecting net income | 10,920 | 6,952 | 7,570 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,251 | (27,492) | 100,129 |
Contract assets | 34,297 | (29,708) | (2,502) |
Inventories | (11,784) | (16,098) | (6,602) |
Operating lease right-of-use assets | (13,516) | 0 | 0 |
Prepaid expenses and other assets | (5,680) | (6,200) | (52,485) |
Accounts payable and other liabilities | (45,185) | 169 | (29,019) |
Income taxes, net | (50,586) | (2,186) | 39,738 |
Contract liabilities | (4,621) | 1,084 | (59) |
Operating lease liabilities | 15,618 | 0 | 0 |
Other non-current liabilities | (845) | (13,996) | 34,650 |
Net cash provided by operating activities | 343,849 | 327,674 | 352,202 |
Investing activities: | |||
Purchases of investment securities | (287,777) | (265,361) | (174,195) |
Proceeds from sales of investment securities | 244,517 | 200,636 | 123,058 |
Proceeds from maturities of available-for-sale securities | 246,621 | 136,951 | 237,432 |
Purchases of property, plant and equipment | (66,347) | (96,281) | (72,814) |
Acquisitions, net of cash acquired | 0 | (14,919) | (22,852) |
Purchase of intangible assets | (2,640) | (17,255) | (12,543) |
Net cash provided by/(used in) investing activities | 134,374 | (56,229) | 78,086 |
Financing activities: | |||
Proceeds from issuance of common stock | 82,658 | 57,346 | 106,162 |
Repurchase of common stock | (173,742) | (340,585) | (150,470) |
Payment of cash dividend | (88,581) | (77,496) | (66,155) |
Distribution to controlling interest | (283) | (1,015) | (1,022) |
Shares repurchased for tax withholdings on vesting of restricted stock | (23,065) | (22,788) | (22,144) |
Payment related to prior purchases of intangible assets | (91) | 0 | 0 |
Payments for Deferred Consideration | 4,671 | 743 | 0 |
Net cash used in financing activities | (207,775) | (385,281) | (133,629) |
Effect of foreign exchange rate changes on cash and cash equivalents | 3,938 | (5,821) | (5,777) |
Cash and cash equivalents at beginning of period | 797,210 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 1,079,979 | 805,593 | 925,250 |
Cash and cash equivalents at end of period | 1,071,876 | 797,210 | |
Supplemental disclosure: | |||
Cash paid for income taxes, net of refunds received | 52,869 | 59,722 | 60,875 |
Non-cash investing activities: | |||
Change in property, plant, and equipment purchased, unpaid at period-end | (3,417) | (324) | 7,990 |
Purchase consideration payable for acquisition | 0 | 1,700 | 3,750 |
Purchase consideration payable for intangibles | 260 | 1,881 | 200 |
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | $ 274,386 | $ (119,657) | $ 290,882 |
Basis Of Presentation
Basis Of Presentation | 12 Months Ended |
Sep. 25, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | . Basis of Presentation Principles of Consolidation The consolidated financial statements include the accounts of Dolby Laboratories, Inc. and our wholly owned subsidiaries. In addition, we have consolidated the financial results of jointly owned affiliated companies in which our principal stockholder has a controlling interest. We report these controlling interests as a separate line in our consolidated statements of operations as net income attributable to controlling interest and in our consolidated balance sheets as a controlling interest. We eliminate all intercompany accounts and transactions upon consolidation. Use of Estimates The preparation of our financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported and disclosed in our consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include estimated shipments by our licensees for which we are owed a sales–based royalty. These estimates involve the use of historical data and judgment for several key attributes including industry estimates of expected shipments, the percentage of markets using our technologies, and average sale prices. Our estimates of royalty-based revenue also take into consideration the macroeconomic effect of global events, such as the COVID-19 pandemic or other natural disasters which may impact our licensees' supply chain activities as well as demand for shipments. Additional significant items subject to such estimates and assumptions include estimated selling prices for performance obligations within revenue arrangements; valuation allowances for accounts receivable; carrying values of inventories and certain property, plant, and equipment, goodwill and intangible assets; fair values of investments; accrued liabilities including liabilities for unrecognized tax benefits, deferred income tax assets and liabilities, and stock-based compensation. Actual results could differ from our estimates. Fiscal Year Our fiscal year is a 52 or 53 week period ending on the last Friday in September. The fiscal years presented herein include the 52 week periods ended September 25, 2020 (fiscal 2020), September 27, 2019 (fiscal 2019), and September 28, 2018 (fiscal 2018). Reclassifications We have reclassified certain prior period amounts within our consolidated financial statements and accompanying notes to conform to our current period presentation. These reclassifications did not affect total revenue, operating income, operating cash flows or net income. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Sep. 25, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | . Summary of Significant Accounting Policies Concentration of Credit Risk Our financial instruments that are exposed to concentrations of credit risk principally consist of cash, cash equivalents, investments, and accounts receivable. Our investment portfolio consists of investment grade securities diversified amongst security types, industries, and issuers. All our securities are held in custody by a recognized financial institution. Our policy limits the amount of credit exposure to a maximum of 5% to any one issuer, except for the U.S. Treasury, and we believe no significant concentration risk exists with respect to these investments. We also mitigate counterparty risk through entering into derivative contracts with high-credit-quality financial institutions. The majority of our licensing revenue is generated from customers outside of the U.S. We manage this risk by performing regular evaluations of the creditworthiness of our licensing customers. In fiscal 2020, 2019, and 2018, we did not have any individual customers whose revenue exceeded 10% of our total revenue. Cash and Cash Equivalents We consider all short-term highly liquid investments with original maturities of 90 days or less from the date of purchase to be cash equivalents. Cash and cash equivalents primarily consist of funds held in general checking accounts, money market accounts, commercial paper, and government bonds. Restricted Cash Restricted cash on our consolidated balance sheets consists of cash contributed by Dolby and third-party licensors to Via Licensing Corporation, our wholly-owned subsidiary, that may only be used for licensor enforcement actions or licensee compliance activities related to certain Via-administered patent pools, as well as to disperse costs associated with any audit of Via Licensing Corporation for the Wideband Code Division Multiple Access (W-CDMA) patent pool. Investments All of our investments are classified as available-for-sale securities, with the exception of our mutual fund investments held in our supplemental retirement plan, which are classified as trading securities. Investments that have an original maturity of 91 days or more at the date of purchase and a current maturity of less than one year are classified as short-term investments, while investments with a current maturity of more than one year are classified as long-term investments. Our investments are recorded at fair value in our consolidated balance sheets. Unrealized gains and losses on our AFS securities are reported as a component of AOCI, while realized gains and losses, other-than-temporary impairments, and credit losses are reported as a component of net income. Upon sale, gains and losses are reclassified from AOCI into earnings, and are determined based on specific identification of securities sold. We evaluate our investment portfolio for credit losses and other-than-temporary impairments by comparing the fair value with the cost basis for each of our investment securities. An investment is impaired if the fair value is less than its cost basis. If any portion of the impairment is deemed to be the result of a credit loss, the credit loss portion of the impairment is included as a component of net income. If we deem it probable that we will not recover the full cost basis of the security, the security is other-than-temporarily impaired, and the impairment loss is recognized as a component of net income. Allowance for Doubtful Accounts We maintain a provision for estimated losses on receivables resulting from our customers' inability to make required payments. In determining the provision, we evaluate the collectability of our accounts receivable based upon a variety of factors. In cases where we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, we record a specific allowance against amounts due, and thereby reduce the net recognized receivable to the amount reasonably believed to be collectible. For all other customers, we recognize allowances for doubtful accounts based on our actual historical write-off experience in conjunction with the length of time the receivables are past due, geographic risk and the current business environment. Actual future losses from uncollectible accounts may differ from our estimates. Inventories Inventories are accounted for using the first-in, first-out method, and are valued at the lower of cost and net realizable value. We evaluate our ending inventories for estimated excess quantities and obsolescence. Our evaluation includes the analysis of future sales demand by product within specific time horizons. Inventories in excess of projected future demand are written down to their net realizable value. In addition, we assess the impact of changing technology on our inventory balances and write-off inventories that are considered obsolete. Write-downs and write-offs of inventory are recorded as a cost of products in our consolidated statements of operations. We classify inventory that we do not expect to sell within twelve months as other non-current assets in our consolidated balance sheets. Property, Plant, and Equipment PP&E is stated at cost less accumulated depreciation. Depreciation expense is recognized on a straight-line basis according to estimated useful lives assigned to each of our different categories of PP&E as summarized within the following table: PP&E Category Useful Life Computer equipment and software 3 to 5 years Machinery and equipment 3 to 8 years Furniture and fixtures 5 to 8 years Leasehold improvements Lesser of useful life or related lease term Equipment provided under operating leases 15 years Buildings and building improvements 20 to 40 years We capitalize certain costs incurred during the construction phase of a project or asset into construction-in-progress until the construction process is complete. Once the related asset is placed into service, we transfer its carrying value into the appropriate fixed asset category and begin depreciating the value over its useful life. Equipment Provided Under Operating Leases. In arrangements that we assess as operating leases, we recognize our cinema equipment installed at third party sites as a fixed asset and depreciate the asset on a straight-line basis. Internal Use Software. We account for the costs of computer software developed for internal use by capitalizing costs of materials and external consultants. These costs are included in PP&E, net of accumulated amortization in our consolidated balance sheets. Our capitalized internal use software costs are typically amortized on a straight-line basis over estimated useful lives of three Goodwill, Intangible Assets, and Long-Lived Assets We test goodwill for impairment annually during our third fiscal quarter and whenever events or changes in circumstances indicate that the carrying amount may be impaired. We perform a qualitative assessment as a determinant for whether the two-step annual goodwill impairment test should be performed. For fiscal 2020, we completed our annual goodwill impairment assessment in the fiscal quarter ended June 26, 2020. We determined in our qualitative review that it is more likely than not that the fair value of our reporting unit is substantially in excess of the respective carrying amount. Accordingly, there was no impairment, and the two-step goodwill impairment test was not required. We did not incur any goodwill impairment losses in any of the periods presented. Intangible assets are stated at their original cost less accumulated amortization, and those with definite lives are amortized over their estimated useful lives. Our intangible assets principally consist of acquired technology, patents, trademarks, customer relationships and contracts, the majority of which are amortized on a straight-line basis over their useful lives using a range from three We review long-lived assets, including intangible assets, for impairment whenever events or a change in circumstances indicate an asset’s carrying value may not be recoverable. Recoverability of an asset is measured by comparing its carrying value to the total future undiscounted cash flows that the asset is expected to generate. If it is determined that an asset is not recoverable, an impairment loss is recorded in the amount by which the carrying value of the asset exceeds its estimated fair value. Revenue Recognition We enter into revenue arrangements with our customers to license technologies, trademarks and patents for sound, imaging and voice solutions, and to sell products and services. We recognize revenue when we satisfy a performance obligation by transferring control over the use of a license, product, or service to a customer. For additional financial information and a summary our accounting policy, refer to Note 3. "Revenue Recognition" to our consolidated financial statements. Cost of Revenue Cost of licensing. Cost of licensing primarily consists of amortization expenses associated with purchased intangible assets and intangible assets acquired in business combinations. Cost of licensing also includes IP royalty obligations to third parties, depreciation of our Dolby Cinema equipment provided under operating leases in collaborative arrangements, and direct fees incurred. Cost of products and services. Cost of products primarily consists of the cost of materials related to products sold, applied labor, and manufacturing overhead. Our cost of products also includes third party royalty obligations paid to license IP that we include in our products. Cost of services primarily consists of the personnel and personnel-related costs of employees performing our professional services, and those of outside consultants, and reimbursable expenses incurred on behalf of customers. Stock-Based Compensation We measure expenses associated with all employee stock-based compensation awards using a fair-value method and record such expense in our consolidated financial statements on a straight-line basis over the requisite service period. Advertising and Promotional Costs Advertising and promotional costs are charged to S&M expense as incurred. Our advertising and promotional costs were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Advertising and promotional costs $ 61,125 $ 49,118 $ 49,519 Foreign Currency Activities Foreign Currency Translation. We maintain business operations in foreign countries. We translate the assets and liabilities of our international subsidiaries, the majority of which are denominated in non-U.S. dollar functional currencies, into U.S. dollars using exchange rates in effect at the end of each period. Revenues and expenses of these subsidiaries are translated using the average rates for the period. Gains and losses from these translations are included in AOCI within stockholders’ equity. Foreign Currency Transactions. Certain of our foreign subsidiaries transact in currencies other than their functional currency. Therefore, we re-measure non-functional currency assets and liabilities of these subsidiaries using exchange rates at the end of each period. As a result, we recognize foreign currency transaction and re-measurement gains and losses, which are recorded within other income, net in our consolidated statements of operations. These losses were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Foreign currency transaction (losses) $ (1,361) $ (260) $ (823) Non-designated Hedges. In an effort to reduce the risk that our earnings will be adversely affected by foreign currency exchange rate fluctuations, we enter into foreign currency forward contracts exclusively to hedge against assets and liabilities for which we have foreign currency exchange rate exposure. These derivative instruments are carried at fair value with changes in the fair value recorded to other income/(expense), net, in our consolidated statements of operations. While not designated as hedging instruments, these foreign currency forward contracts are used to reduce the exchange rate risk associated primarily with intercompany receivables and payables. These contracts do not subject us to material balance sheet risk due to exchange rate movements as gains and losses on these derivatives are intended to offset gains and losses on the related receivables and payables for which we have foreign currency exchange rate exposure. As of September 25, 2020 and September 27, 2019, the outstanding derivative instruments had maturities of equal to or less than 31 days and 31 days, respectively, and the total notional amounts of outstanding contracts were $26.8 million and $22.0 million, respectively. The fair values of these contracts were nominal as of September 25, 2020 and September 27, 2019, and were included within prepaid expenses and other current assets and within accrued liabilities in our consolidated balance sheets. Cash Flow Hedges. We also enter into forward currency contracts exclusively designated as cash flow hedges, which have a maturity of thirteen months or less, to reduce the impact of currency volatility on U.S. dollar operating expenses and margins. Our cash flow hedge program was entered into in fiscal 2019. The gains and losses from the effective portions of cash flow hedges are recorded at fair value as a component of AOCI, until the hedged item is subsequently reclassified into earnings in the same period in which the hedged transaction affects earnings, with the corresponding hedged item. Amounts reclassified are recorded to the same line item in the consolidated statements of operations as the impact of the hedge transaction, concurrently with the hedged costs. The pre-tax gain attributed to the effective portion of cash flow hedges recognized in AOCI was $5.3 million in fiscal 2020, and was immaterial in fiscal 2019. The pre-tax effective portion of gains or losses reclassified to the consolidated statements of income was not material during fiscal 2020 and fiscal 2019. Income Taxes We use the asset and liability method, under which deferred income tax assets and liabilities are determined based upon the difference between the financial statement carrying amounts and the tax bases of assets and liabilities, and NOL carryforwards are measured using the enacted tax rate expected to apply to taxable income in the years in which the differences are expected to be reversed. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is additionally dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities and projected future taxable income in making this assessment, and we record a valuation allowance to reduce our deferred tax assets when it's more-likely-than-not that some portion or all of the deferred tax assets will not be realized. We record an unrecognized tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the tax authorities. We include interest and penalties related to gross unrecognized tax benefits within our provision for income taxes. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued are reversed in the period that such determination is made and are reflected as a reduction of the overall income tax provision. Repatriation of Undistributed Foreign Earnings. The Tax Cuts and Jobs Act of 2017 ("the Tax Act"), provides an exemption from federal income taxes for distributions by foreign subsidiaries made after December 31, 2017 that were not subject to the transition tax. Therefore, we have provided for U.S. state income taxes and foreign withholding taxes on undistributed earnings of certain foreign subsidiaries to the extent such earnings are no longer considered to be indefinitely reinvested in the operations of those subsidiaries. We consider the earnings of certain foreign subsidiaries to be indefinitely reinvested outside the U.S. on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs, and our specific plans for reinvestment of those subsidiary earnings. Recently Issued Accounting Standards We continually assess any ASUs or other new accounting pronouncements issued by the FASB to determine their applicability and impact on us. Where it is determined that a new accounting pronouncement will result in a change to our financial reporting, we take the appropriate steps to ensure that such changes are properly reflected in our consolidated financial statements or notes thereto. Adopted Standards Leases. In the first quarter of fiscal 2020, we adopted ASU 2016-02, Leases (ASC 842 ) along with all subsequent applicable ASU clarifications and improvements , which requires lessees to recognize leases on balance sheet and disclose key information about leasing arrangements. We adopted ASC 842 using the modified retrospective transition method and used the effective date as the date of initial application. Consequently, financial information is not updated and the disclosures required under ASC 842 are not provided for dates and periods prior to implementation. ASC 842 provides a number of optional practical expedients in transition. We elected the “package of practical expedients,” which permits us not to reassess under ASC 842 our prior conclusions about lease identification, lease classification and initial direct costs. In addition, we account for lease and non-lease components as a single lease component. Operating leases are included in operating lease right-of-use assets and in current and non-current operating lease liabilities on our consolidated balance sheets. As a lessee, the adoption of ASC 842 resulted in the recording of Operating lease right-of-use ("ROU") assets and Operating lease liabilities of $62.1 million and $64.6 million, respectively, as of September 28, 2019. The difference between the operating lease assets and liabilities was recorded as an adjustment to Other non-current liabilities, primarily related to deferred rent and other lease incentives. As a lessor, the adoption of ASC 842 did not have a material impact. The adoption of ASC 842 did not impact Retained Earnings. Income Taxes: Comprehensive Income. In the first quarter of fiscal 2020, we adopted ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. We elected to not reclassify the stranded tax effects to retained earnings as they were not material to Dolby's consolidated financial statements. Standards Not Yet Adopted Collaborative Arrangements. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 , which clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, ASU 2018-18 precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. This standard will be effective for Dolby beginning September 26, 2020. While we have a number of collaborative arrangements, we do not believe that this standard will have a material impact on our consolidated financial statements. Financial Instruments. In June 2016, the FASB issued ASU 2016-13, Financial Instruments (Topic 326): Measurement of Credit Losses on Financial Instruments , which modifies the measurement of expected credit losses of certain financial instruments, including trade receivables, contract assets, and lease receivables. This standard will be effective for Dolby beginning September 26, 2020. We do not believe that this standard will have a material impact on our consolidated financial statements. Income Taxes. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Sep. 25, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition We enter into revenue arrangements with our customers to license technologies, trademarks and patents for sound, imaging and voice solutions, and to sell products and services. We recognize revenue when we satisfy a performance obligation by transferring control over the use of a license, product, or service to a customer. A. Identification of the Contract or Contracts with Customers We generally determine that a contract with a customer exists upon the execution of an agreement and after consideration of collectability, which could include an evaluation of the customer's payment history, the existence of a standby letter-of-credit between the customer’s financial institution and our financial institution, public financial information, and other factors. At contract inception, we also evaluate whether two or more non-standard agreements with a customer should be combined and accounted for as a single contract. B. Identification of Performance Obligations in a Contract We generate revenues principally from the following sources, which represent performance obligations in our contracts with customers: • Licensing. We license our technologies, including patents, to a range of customers who incorporate them into their products for enhanced audio, imaging and voice functionality across broadcast, mobile, CE, PC, gaming, and other markets. • Product Sales. We design and provide audio and imaging products for the cinema, television, broadcast, communications, and entertainment industries. • Services. We provide various services to support theatrical and television production for cinema exhibition, broadcast, and home entertainment, including equipment training, mixing room alignment, equalization, as well as audio, color and light image calibration. • PCS. We provide PCS for products sold and for equipment leased, and we support the implementation of our licensing technologies in our licensees’ products. • Equipment Leases. We collaborate with established cinema exhibitors to offer Dolby Cinema, a branded premium cinema offering for movie audiences by leasing equipment and licensing our intellectual property. We also lease hardware that facilitates the Dolby conferencing experience, including the Dolby Conference Phone, and the Dolby Voice Room solution. • Licensing Administration Fees. We generate service fees for managing patent pools on behalf of third party patent owners through our wholly-owned subsidiary, Via Licensing Corporation. Some of our revenue arrangements include multiple performance obligations, such as hardware, software, support and maintenance, and extended warranty services. We evaluate whether promised products and services are distinct performance obligations. The majority of our arrangements with multiple performance obligations pertain to our digital cinema server and processor sales that include the following distinct performance obligations to which we allocate portions of the transaction price based on their stand-alone selling price: • Digital cinema server hardware and embedded software, which is highly dependent on and highly interrelated with the hardware. Accordingly, the hardware and embedded software represent a single performance obligation. • The right to support and maintenance, which is included with the purchase of the digital cinema server hardware, is a distinct performance obligation. • The right to receive commissioning services is a distinct performance obligation within the sale of the Dolby Atmos Cinema Processor. These services consist of the review of venue designs specifying proposed speaker placement as well as calibration services performed for installed speakers to ensure optimal playback. C. Determination of Transaction Price for Performance Obligations in a Contract After identifying the distinct performance obligations, we determine the transaction price in accordance with the terms of the underlying executed contract which may include variable consideration such as discounts, rebates, refunds, rights of returns, and incentives. We assess and update, if necessary, the amount of variable consideration to which we are entitled for each reporting period. At the end of each reporting period, we estimate and accrue a liability for returns and adjustments as a reduction to revenue based on several factors, including past returns history. With the exception of our sales-based royalties, we evaluate whether a significant financing component exists when we recognize revenue in advance of customer payments that occur over time. For example, some of our licensing arrangements include payment terms greater than one year from when we transfer control of our IP to a licensee and the receipt of the final payment for that IP. If a significant financing component exists, we classify a portion of the transaction price as interest income, instead of recognizing all of the transaction price as revenue. We do not adjust the transaction price for the effects of financing if, at contract inception, the period between the transfer of control to a customer and final payment is expected to be one year or less. D. Allocation of Transaction Price to Distinct Performance Obligations in a Contract For our sales-based royalties where the license is the predominant item to which the royalties relate, we present all revenues as licensing. For revenue arrangements that include multiple performance obligations, we determine the stand-alone selling price for each distinct performance obligation based on the actual selling prices made to customers. If the performance obligation is not sold separately, we estimate the stand-alone selling price. We do so by considering market conditions such as competitor pricing strategies, customer specific information and industry technology lifecycles, internal conditions such as cost and pricing practices, or applying the residual approach method when the selling price of the good, most commonly a license, is highly variable or uncertain. Once the transaction price - including any variable consideration - has been determined, we allocate the transaction price to the performance obligations identified in the contract and recognize revenue as or when control is transferred for each distinct performance obligation. E. Revenue Recognition as Control is Transferred to a Customer We generate our licensing revenue by licensing our technologies and patents to various types of licensees, such as chip manufacturers ("implementation licensees"), consumer product manufacturers, software vendors, and communications service providers. Our revenue recognition policies for each of these arrangements are summarized below. Initial fees from implementation licensees. Implementation licensees incorporate our technologies into their chipsets that, once approved by Dolby, are available for purchase by OEMs for use in end-user products. Implementation licensees only pay us a nominal initial fee on contract execution as consideration for the ongoing services that we provide to assist in their implementation process. Revenues from these initial fees are recognized ratably over the contractual term as a component of licensing revenue. Sales-based licensing fees. In our royalty bearing licensing agreements with OEMs, control is transferred upon the later of contract execution or the contract’s effective date. We apply the royalty exception, which requires that we recognize sales-based royalties when the sales occur based on our estimates. These estimates involve the use of historical data and judgment for several key attributes including industry estimates of expected shipments, the percentage of markets using our technologies, and average sale prices. Generally, our estimates represent the current period’s shipments to which we expect our licensees to submit royalty statements in the following quarter. Upon receipt of royalty statements from the licensees with the actual reporting of sales-based royalties that we estimated previously, we record a favorable or unfavorable adjustment based on the difference, if any, between estimated and actual sales. In the first quarter of fiscal 2020, we recorded a favorable adjustment of approximately $9 million, which was primarily related to shipments that occurred in our fourth quarter of fiscal 2019 (July through September) and largely based on actual royalty statements received from licensees. In the second, third, and fourth quarters of fiscal 2020 we recorded favorable adjustments of $7 million, $11 million, and $26 million, respectively, each primarily related to shipments that occurred in the preceding fiscal quarter, and largely based on actual royalty statements received from licensees. Fixed and guaranteed licensing fees. In certain cases, our arrangements require the licensee to pay fixed, non-refundable fees. In these cases, control is transferred, and fees are recognized upon the later of contract execution or the effective date. Additionally, and separate from initial fees from implementation licensees, our sales- and usage-based licensing agreements include a nominal fee, which is also recognized at a point in time in which control of the IP has been transferred. Revenues from these arrangements are included as a component of licensing revenue. Recoveries. Through compliance efforts, we identify under-reported licensed activity related to non-current periods. We may record a favorable or unfavorable revenue adjustment in connection with the findings from these compliance efforts generally upon resolution with the licensee through agreement of the findings, or upon receipt of the licensee’s correction statement. Revenues from these arrangements are included as a component of licensing revenue. We undertake activities aimed at identifying potential unauthorized uses of our technologies, which when successful result in the recognition of revenue. Recoveries stem from third parties who agree to remit payments to us based on past use of our technology. In these scenarios, a legally binding contract did not exist at time of use of our technology, and therefore, we recognize revenue recoveries upon execution of the agreement as that is the point in time to which a contract exists and control is transferred. These revenues are classified as licensing revenue. In general, we classify legal costs associated with activities aimed at identifying potential unauthorized uses of our technologies, auditing existing licensees, and on occasion, pursuing litigation as S&M in our consolidated statements of operations. We recognize licensing revenue gross of withholding taxes, which our licensees remit directly to their local tax authorities, and for which we receive a partial foreign tax credit in our income tax provision. In addition to our licensing arrangements, we also enter into arrangements to deliver products and services. Product Sales. Revenue from the sale of products is recognized when the customer obtains control of the promised good or service, which is generally upon shipment. Payments are generally made within 90 days of sale. Services. We provide various services, such as engineering services related to movie soundtrack print mastering, equipment training and maintenance, mixing room alignment, equalization, and image calibration, which we bill on a fixed fee and time and materials basis. Most of these services are of a short duration and are recognized as control of the performance obligations are transferred which is when the related services are performed. Collaborative Arrangements. We collaborate with established cinema exhibitors to offer Dolby Cinema, a branded premium cinema offering for movie audiences. Under such collaborations, Dolby and the exhibitor are both active participants, and share the risks and rewards associated with the business. Accordingly, these collaborations are governed by revenue sharing arrangements under which Dolby receives revenue based on box office receipts, reported to Dolby by exhibitor partners on a monthly or quarterly basis, our proprietary designs and trademarks as well as for the use of our equipment at the exhibitor’s venue. The use of our product solution meets the definition of a lease, and for the related portion of Dolby's share of revenue, we apply ASC 842, Leases , and recognize revenue based on monthly box office reports from exhibitors. Our revenue share is recognized as licensing revenue in our consolidated statements of operations. In addition, we also enter into hybrid agreements where a portion involves guaranteed payments, which in some cases result in classifying the arrangement as a sales-type lease. In such arrangements, we consider control to transfer at the point in time to which we have installed and tested the equipment, at which point we record such guaranteed payments as product revenue. Via Administration Fee. We generate service fees for managing patent pools on behalf of third party patent owners through our wholly-owned subsidiary, Via Licensing Corporation. As an agent to licensors in the patent pool, Via receives a share of the sales-based royalty that the patent pool licensors earn from licensees. As such, we apply the sales-based royalty exception as the service provided is directly related to the patent pool licensors’ provision of IP, which results in recognition based on estimates of the licensee’s quarter shipments that use the pool’s patents. In addition to sales-based royalties, Via also has contracts where the fees are fixed. The revenue share Via receives from licensors on fixed fee contracts is recognized over the term in which we are providing services associated with the fixed fee contract. We recognize our administrative fees net of the consideration paid to the patent licensors in the pool as licensing revenue. Deferred revenue, which is a component of contract liabilities, represents amounts that are ultimately expected to be recognized as revenue, but for which we have yet to satisfy the performance obligation. On September 25, 2020, we had $37.9 million of remaining performance obligations, 38% of which we expect to recognize as revenue in fiscal 2021, 22% in fiscal 2022, and the balance of 40% in fiscal years beyond 2022. F. Disaggregation of revenue The following table presents a summary of the composition of our revenue for all periods presented: Fiscal Year-To-Date Ended September 25, 2020 September 27, 2019 Revenue Licensing $ 1,078,577 93 % $ 1,107,280 89 % Products and services 83,215 7 % 134,340 11 % Total revenue $ 1,161,792 100 % $ 1,241,620 100 % The following table presents the composition of our licensing revenue for all periods presented: Fiscal Year-To-Date Ended September 25, 2020 September 27, 2019 Revenue By Market Broadcast $ 439,415 41 % $ 474,147 43 % Mobile 226,972 21 % 193,052 17 % CE 152,608 14 % 154,399 14 % PC 132,302 12 % 113,597 10 % Other 127,280 12 % 172,085 16 % Total licensing revenue $ 1,078,577 100 % $ 1,107,280 100 % We license our technologies in approximately 60 countries, and our licensees distribute products that incorporate our technologies throughout the world. As shown in the table below, we generate the majority of our revenue from outside the United States. Geographic data for our licensing revenue is based on the location of our licensees’ headquarters, products revenue is based on the destination to which we ship our products, and services revenue is based on the location where services are performed. Fiscal Year-To-Date Ended September 25, 2020 September 27, 2019 Revenue By Geographic Location United States $ 460,972 40 % $ 449,203 36 % International 700,820 60 % 792,417 64 % Total revenue $ 1,161,792 100 % $ 1,241,620 100 % G. Contract balances Our contract assets represent rights to consideration from licensees for the use of our IP that we have estimated in a given period in the absence of receiving actual royalty statements from licensees. These estimates reflect our best judgment at that time, and are developed using a number of inputs, including historical data, industry estimates of expected shipments, anticipated sales price and performance, and third-party data supporting the percentage of markets using our technologies. In the event that our estimates differ from actual amounts reported, we record an adjustment in the quarter in which the report is received which is typically the quarter following our estimate. Actual amounts reported are typically paid within sixty days following the end of the quarter of shipment. The main drivers for change in the contract assets account are variances in quarterly estimates, and to a lesser degree, timing of receipt of actual royalty statements. Our contract liabilities consist of advance payments and billings in advance of performance, deferred revenue that is typically satisfied within one year, and deferred interest where we have significant financing. The non-current portion of contract liabilities is separately disclosed in our consolidated balance sheets. We present the net contract asset or liability when we have both contract assets and contract liabilities for a single contract. In fiscal year 2020, we recognized $17.7 million from prior period deferred revenue. The following table presents a summary of the balances to which contract assets and liabilities related to revenue are recorded for all periods presented: September 25, 2020 September 27, 2019 Change ($) Change (%) Accounts receivable, net $ 180,340 $ 189,115 $ (8,775) (5) % Contract assets 161,357 195,651 (34,294) (18) % Contract liabilities - current 15,436 19,991 (4,555) (23) % Contract liabilities - non-current 24,342 24,404 (62) — % |
Composition Of Certain Financia
Composition Of Certain Financial Statement Captions | 12 Months Ended |
Sep. 25, 2020 | |
Composition Of Certain Financial Statement Captions [Abstract] | |
Composition Of Certain Financial Statement Captions | Composition of Certain Financial Statement Captions The following tables present detailed information from our consolidated balance sheets as of September 25, 2020 and September 27, 2019 (amounts displayed in thousands). Accounts Receivable Accounts Receivable, Net September 25, September 27, Trade accounts receivable $ 147,618 $ 151,996 Accounts receivable from patent administration program licensees 48,630 46,894 Accounts receivable, gross 196,248 198,890 Less: allowance for doubtful accounts (15,908) (9,775) Total $ 180,340 $ 189,115 Accounts receivable, gross includes unbilled accounts receivable balances of $62.1 million and $82.3 million as of September 25, 2020 and September 27, 2019, respectively, related to amounts that are contractually owed. The unbilled balance represents our unconditional right to consideration related to fixed fee contracts which we are entitled to as a result of satisfying, or partially satisfying, performance obligations, as well as Via's unconditional right to consideration related to their patent administration programs. Allowance for Doubtful Accounts Beginning Balance Charged to Deductions Ending Balance For fiscal year ended: September 28, 2018 $ 2,967 $ 2,413 $ (122) $ 5,258 September 27, 2019 5,258 4,523 (6) 9,775 September 25, 2020 9,775 7,689 (1,556) 15,908 Inventories Inventories September 25, September 27, Raw materials $ 3,770 $ 8,031 Work in process 9,214 4,872 Finished goods 12,566 19,428 Total $ 25,550 $ 32,331 Inventories are stated at the lower of cost and net realizable value. Inventory with a consumption period expected to exceed twelve months is recorded within other non-current assets in our consolidated balance sheets. We have included $2.6 million and $3.0 million of raw materials inventory within other non-current assets in our consolidated balance sheets as of September 25, 2020 and September 27, 2019, respectively. Based on anticipated inventory consumption rates, and aside from existing write-downs due to excess inventory, we do not believe that material risk of obsolescence exists prior to ultimate sale. Prepaid Expenses And Other Current Assets Prepaid Expenses And Other Current Assets September 25, September 27, Prepaid expenses $ 17,884 $ 17,997 Other current assets 35,138 21,707 Total $ 53,022 $ 39,704 As of September 25, 2020, other current assets include the carrying value of $2.2 million of land and building that are currently held for sale. In fiscal year 2019, management committed to a plan to sell the property. There have been no changes to this plan in the current period. Based on current estimated selling prices in the market, we have determined that no indicators of potential impairment exist. Accrued Liabilities Accrued Liabilities September 25, September 27, Accrued royalties $ 901 $ 2,957 Amounts payable to patent administration program partners 60,427 58,899 Accrued compensation and benefits 89,684 78,716 Accrued professional fees 10,344 19,216 Unpaid PP&E additions 15,102 15,332 Accrued customer refunds 10,053 24,299 Other accrued liabilities 33,463 68,725 Total $ 219,974 $ 268,144 Other Non-Current Liabilities Other Non-Current Liabilities September 25, September 27, Supplemental retirement plan obligations $ 4,181 $ 3,466 Non-current tax liabilities (1) 85,943 136,323 Other liabilities 32,030 37,673 Total $ 122,154 $ 177,462 (1) Refer to Note 12 “ Income Taxes ” for additional information related to tax liabilities. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 25, 2020 | |
Fair Value Disclosures [Abstract] | |
Investments and Fair Value Measurements | Investments & Fair Value Measurements We use cash holdings to purchase investment grade securities diversified among security types, industries, and issuers. All of our investment securities are measured at fair value, and are recorded within cash equivalents and both short-term and long-term investments in our consolidated balance sheets. With the exception of our mutual fund investments held in our SERP and classified as trading securities, all of our investments are classified as AFS securities. Our investment securities primarily consist of government bonds, certificates of deposit, municipal debt securities, corporate bonds, U.S. agency securities, and commercial paper. In addition, our cash and cash equivalents also consist of highly-liquid money market funds. Consistent with our investment policy, none of our municipal debt investments are supported by letters of credit or standby purchase agreements. Our cash and investment portfolio consisted of the following (in thousands): September 25, Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 856,740 $ — $ — $ 856,740 $ 856,740 $ — $ — Cash equivalents: Commercial paper 900 — — 900 — 900 — Money market funds 214,111 — — 214,111 214,111 — — Government bonds 125 — — 125 125 — — Cash and cash equivalents 1,071,876 — — 1,071,876 1,070,976 900 — Short-term investments: Certificate of deposit 2,277 1 — 2,278 — 2,278 — U.S. agency securities 999 12 — 1,011 — 1,011 — Government bonds 5,118 47 — 5,165 1,370 3,795 — Commercial paper 4,727 4 — 4,731 — 4,731 — Corporate bonds 18,754 87 (3) 18,838 — 18,838 — Municipal debt securities 14,828 97 — 14,925 — 14,925 — Short-term investments 46,703 248 (3) 46,948 1,370 45,578 — Long-term investments: U.S. agency securities 2,214 56 — 2,270 — 2,270 — Government bonds 5,137 80 — 5,217 1,633 3,584 — Corporate bonds 24,657 419 (7) 25,069 — 25,069 — Municipal debt securities 15,220 203 (6) 15,417 — 15,417 — Other long-term investments (1) 4,176 — — 4,176 — — — Long-term investments 51,404 758 (13) 52,149 1,633 46,340 — Total cash, cash equivalents, and investments $ 1,169,983 $ 1,006 $ (16) $ 1,170,973 $ 1,073,979 $ 92,818 $ — Investments held in supplemental retirement plan: Assets 4,279 — — 4,279 4,279 — — Included in prepaid expenses and other current assets & other non-current assets Liabilities 4,279 — — 4,279 4,279 — — Included in accrued liabilities & other non-current liabilities Currency derivatives as hedge instruments: Assets: Included in other current assets — 4,267 — 4,267 — 4,267 — Assets: included in other non-current assets — 369 — 369 — 369 — Liabilities: Included in other accrued expenses — — (79) (79) — (79) — (1) Other long-term investments as of September 25, 2020 is comprised of one equity method investment which is not carried at fair value of $4.2 million. September 27, Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 680,287 $ — $ — $ 680,287 $ 680,287 $ — $ — Cash equivalents: Corporate bonds 1,000 — — 1,000 — 1,000 — Money market funds 115,270 — — 115,270 115,270 — — Government bonds 653 — — 653 653 — — Cash and cash equivalents 797,210 — — 797,210 796,210 1,000 — Short-term investments: Certificate of deposit 1,265 1 — 1,266 — 1,266 — U.S. agency securities 10,973 8 (9) 10,972 — 10,972 — Government bonds 8,381 11 (1) 8,391 5,784 2,607 — Commercial paper 6,347 9 — 6,356 — 6,356 — Corporate bonds 76,802 172 (34) 76,940 — 76,940 — Municipal debt securities 15,210 18 (7) 15,221 — 15,221 — Short-term investments 118,978 219 (51) 119,146 5,784 113,362 — Long-term investments: Asset backed securities 400 2 — 402 — 402 — U.S. agency securities 7,102 146 — 7,248 — 7,248 — Government bonds 23,563 187 — 23,750 19,670 4,080 — Corporate bonds 134,360 1,700 — 136,060 — 136,060 — Municipal debt securities 10,315 87 (6) 10,396 — 10,396 — Other long-term investments (1) 1,731 — — 1,731 — — — Long-term investments 177,471 2,122 (6) 179,587 19,670 158,186 — Total cash, cash equivalents, and investments $ 1,093,659 $ 2,341 $ (57) $ 1,095,943 $ 821,664 $ 272,548 $ — Investments held in supplemental retirement plan: Assets 3,564 — — 3,564 3,564 — — Included in prepaid expenses and other current assets & other non-current assets Liabilities 3,564 — — 3,564 3,564 — — Included in accrued liabilities & other non-current liabilities Currency derivatives as hedge instruments: Liabilities: Included in other accrued expenses — — (242) (242) — (242) — (1) Other long-term investments as of September 27, 2019 is comprised of one equity method investment which is not carried at fair value of $1.7 million. Fair Value Hierarchy. Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. We minimize the use of unobservable inputs and use observable market data, if available, when determining fair value. We classify our inputs to measure fair value using the following three-level hierarchy: Level 1: Quoted prices in active markets at the measurement date for identical assets and liabilities. We base the fair value of our Level 1 financial instruments, which are traded in active markets, using quoted market prices for identical instruments. Level 2: Prices may be based upon quoted prices in active markets or inputs not quoted on active markets but are corroborated by market data. We obtain the fair value of our Level 2 financial instruments from a professional pricing service, which may use quoted market prices for identical or comparable instruments, or model driven valuations using observable market data or inputs corroborated by observable market data. To validate the fair value determination provided by our primary pricing service, we perform quality controls over values received which include comparing our pricing service provider’s assessment of the fair values of our investment securities against the fair values of our investment securities obtained from another independent source, reviewing the pricing movement in the context of overall market trends, and reviewing trading information from our investment managers. In addition, we assess the inputs and methods used in determining the fair value in order to determine the classification of securities in the fair value hierarchy. Level 3: Unobservable inputs are used when little or no market data is available and reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The following table describes the valuation techniques and inputs applicable to each class of security held within our investment portfolio as of September 25, 2020: Asset Type Primary Source Update Frequency Fair Value Methodology Secondary Source Level 1 Money Market Funds ICE (Intercontinental Exchange) Daily $1 per share Not Applicable U.S. Government Bonds ICE (Intercontinental Exchange) Daily Institutional Bond Quotes - evaluations based on various market and industry inputs Bloomberg Level 2 Certificates of Deposit ICE (Intercontinental Exchange) Monthly Market Prices Bloomberg Commercial Paper U.S. Bank Pricing Unit Daily Matrix Pricing Not Applicable Corporate Bonds ICE (Intercontinental Exchange) Daily Institutional Bond Quotes - evaluations based on various market and industry inputs Bloomberg Municipal Debt Securities ICE (Intercontinental Exchange) Daily Evaluations based on various market and industry inputs Bloomberg U.S. Agency Securities ICE (Intercontinental Exchange) Daily Institutional Bond Quotes - evaluations based on various market and industry inputs Bloomberg Int'l Government Bonds ICE (Intercontinental Exchange) Daily Evaluations based on various market factors Bloomberg Securities In Gross Unrealized Loss Position. We periodically evaluate our investments for other-than-temporary declines in fair value. The unrealized losses on our AFS securities were primarily the result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. The following table presents the gross unrealized losses and fair value for those AFS securities that were in an unrealized loss position as of September 25, 2020 and September 27, 2019 (in thousands): September 25, 2020 September 27, 2019 Less Than 12 Months Greater Than 12 Months Less Than 12 Months Greater Than 12 Months Investment Type Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Certificate of deposit $ — $ — $ — $ — $ 300 $ — $ — $ — U.S. agency securities — — — — — — 4,787 (9) Government bonds — — — — 1,426 — — — Corporate bonds 7,076 (10) — — 7,647 (3) 27,078 (32) Municipal debt securities 2,505 (6) — — 9,552 (13) 900 — Total $ 9,581 $ (16) $ — $ — $ 18,925 $ (16) $ 32,765 $ (41) Although we had certain securities that were in an unrealized loss position as of September 25, 2020, we expect to recover the full carrying value of these securities as we do not intend to, nor do we currently anticipate a need to sell these securities prior to recovering the associated unrealized losses. As a result, we do not consider any portion of the unrealized losses at either September 25, 2020 or September 27, 2019 to represent an other-than-temporary impairment, nor do we consider any of the unrealized losses to be credit losses. Investment Maturities. The following table summarizes the amortized cost and estimated fair value of the AFS securities within our investment portfolio based on stated maturities as of September 25, 2020 and September 27, 2019, which are recorded within cash equivalents and both short and long-term investments in our consolidated balance sheets (in thousands): September 25, 2020 September 27, 2019 Range of maturity Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ 261,839 $ 262,085 $ 238,186 $ 238,354 Due in 1 to 2 years 29,328 29,814 93,948 94,899 Due in 2 to 3 years 17,900 18,159 81,793 82,957 Total $ 309,067 $ 310,058 $ 413,927 $ 416,210 |
Property, Plant & Equipment
Property, Plant & Equipment | 12 Months Ended |
Sep. 25, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant, & Equipment PP&E are recorded at cost, with depreciation expense included in cost of licensing, cost of products, cost of services, R&D, S&M, and G&A expenses in our consolidated statements of operations. Depreciation expense was $61.4 million, $55.5 million, and $54.8 million in fiscal 2020, 2019, and 2018, respectively. As of September 25, 2020 and September 27, 2019, PP&E consisted of the following (in thousands): Property, Plant, & Equipment September 25, September 27, Land $ 41,955 $ 41,918 Buildings and building improvements 283,617 282,924 Leasehold improvements 83,764 66,730 Machinery and equipment 126,942 128,525 Computer equipment and software 230,800 219,455 Furniture and fixtures 31,845 34,191 Equipment provided under operating leases 199,561 161,372 Construction-in-progress 19,545 19,616 Property, plant, and equipment, gross 1,018,029 954,731 Less: accumulated depreciation (476,066) (417,299) Property, plant, & equipment, net $ 541,963 $ 537,432 |
Leases
Leases | 12 Months Ended |
Sep. 25, 2020 | |
Leases [Abstract] | |
Leases | Leases As Lessee As a lessee, we enter into contracts to access and utilize office space, including those payable to our principal stockholder and portions attributable to the controlling interests in our wholly owned subsidiaries. We determine if a contract contains a lease based on whether we have the right to obtain substantially all of the economic benefits from the use of an identified asset and whether we have the right to direct the use of an identified asset in exchange for consideration, which relates to an asset which we do not own. Right of use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets are recognized as the lease liability, adjusted for lease incentives received. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our Incremental Borrowing Rate, because the interest rate implicit in our leases is not readily determinable. The IBR is a hypothetical rate based on our understanding of what our credit rating would be to borrow and resulting interest we would pay to borrow an amount equal to the lease payments in a similar economic environment over the lease term on a collateralized basis. Lease payments may be fixed or variable, however, only fixed payments are included in our lease liability calculation. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred. The lease term of operating leases vary from less than a year to 12 years. We have leases that include one or more options to extend the lease term for up to 9 years as well as options to terminate the lease within one year. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. The components of lease expense were as follows (in thousands): September 25, 2020 Lease cost Operating lease cost $ 23,570 Variable lease cost 1,175 Total lease cost $ 24,745 Total rent expense incurred under operating leases, including the portion of total rent expense which is payable to our principal stockholder, was $20.6 million and $17.2 million in fiscal 2019 and 2018, respectively. Supplemental cash flow information related to leases was as follows (in thousands): September 25, 2020 Other information Cash paid for amounts included in the measurement of operating lease liabilities $ 22,043 Right-of-use assets obtained in exchange for operating lease obligations 34,198 Supplemental balance sheet information related to leases was as follows: September 25, 2020 Operating Leases Weighted-average remaining lease term 6.5 years Weighted-average discount rate 3.1 % The following tables presents the maturity analysis of lease liabilities (in thousands): September 25, 2020 Operating Leases Fiscal 2021 $ 18,098 Fiscal 2022 14,868 Fiscal 2023 13,299 Fiscal 2024 12,718 Fiscal 2025 8,898 Thereafter 22,484 Total undiscounted lease payments 90,365 Less: imputed interest (9,228) Total lease liabilities $ 81,137 September 27, 2019 Operating Leases Remainder of Fiscal 2020 $ 17,231 Fiscal 2021 9,329 Fiscal 2022 7,191 Fiscal 2023 6,218 Fiscal 2024 4,499 Thereafter 12,355 Total undiscounted lease payments $ 56,823 As Lessor As a lessor, we lease our Dolby Cinema product solution to exhibitors, Dolby Voice equipment to cloud conferencing service providers, and lease or sublease real estate properties. The terms of these leases vary from 4 to 10 years. Lease components consist of fixed payments and/or variable lease payments based on contracted percentages of revenue. Generally, leases do not grant any right to the lessee to purchase the underlying asset at the end of the lease term, with the exception of certain leases of Dolby Voice equipment for which the customer has the option to purchase the equipment at fair value. Dolby Cinema lease arrangements have options to extend the lease term at expiration by increments ranging from 1 to 5 years. Assets provided under an operating lease are carried at cost within property, plant and equipment and depreciated over the useful life of these asset using the straight-line method. Fixed operating lease payments are recognized on a straight-line basis over the lease term to other income for our real estate property and to revenue for all other leases. Variable lease payments received under our Dolby Cinema operating leases are computed as shares of lessees' box office revenues and recognized to revenue in the period that box office sales occur. Lease incentive payments we make to lessees are amortized as a reduction in revenue over the lease term. For the year ended September 25, 2020, variable operating lease income was $10.4 million and fixed operating lease income was $3.7 million. If a lease is classified as a sales-type lease, the carrying amount of the asset is derecognized from property, plant and equipment and a net investment in the lease is recorded. The net investment in the lease is measured at commencement date as the sum of the lease receivable and the estimated residual value of the equipment. The unguaranteed residual value of the equipment was determined as the estimated carrying value of the asset at the end of the lease term had the asset been depreciated on a straight-line basis. At September 25, 2020, the unguaranteed residual value of sales-type leases was $0.7 million. Selling profit or loss arising from a sales-type lease is recorded at lease commencement and presented on a gross basis. Over the term of the lease, we recognize interest income on the net investment in the lease and any variable lease payments, which is not material and not included in the net investment in the lease. The following table presents the maturity analysis of fixed lease payments due to Dolby (in thousands): September 25, 2020 Operating Leases Sales-Type Leases Fiscal 2021 $ 3,361 $ 1,605 Fiscal 2022 3,393 1,605 Fiscal 2023 3,354 1,603 Fiscal 2024 1,821 796 Fiscal 2025 78 395 Thereafter 346 395 Total undiscounted cash flows 12,353 6,399 Less: present value of lease payments (recognized as lease receivables) (4,821) Difference $ 1,578 |
Leases | Leases As Lessee As a lessee, we enter into contracts to access and utilize office space, including those payable to our principal stockholder and portions attributable to the controlling interests in our wholly owned subsidiaries. We determine if a contract contains a lease based on whether we have the right to obtain substantially all of the economic benefits from the use of an identified asset and whether we have the right to direct the use of an identified asset in exchange for consideration, which relates to an asset which we do not own. Right of use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets are recognized as the lease liability, adjusted for lease incentives received. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our Incremental Borrowing Rate, because the interest rate implicit in our leases is not readily determinable. The IBR is a hypothetical rate based on our understanding of what our credit rating would be to borrow and resulting interest we would pay to borrow an amount equal to the lease payments in a similar economic environment over the lease term on a collateralized basis. Lease payments may be fixed or variable, however, only fixed payments are included in our lease liability calculation. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred. The lease term of operating leases vary from less than a year to 12 years. We have leases that include one or more options to extend the lease term for up to 9 years as well as options to terminate the lease within one year. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. The components of lease expense were as follows (in thousands): September 25, 2020 Lease cost Operating lease cost $ 23,570 Variable lease cost 1,175 Total lease cost $ 24,745 Total rent expense incurred under operating leases, including the portion of total rent expense which is payable to our principal stockholder, was $20.6 million and $17.2 million in fiscal 2019 and 2018, respectively. Supplemental cash flow information related to leases was as follows (in thousands): September 25, 2020 Other information Cash paid for amounts included in the measurement of operating lease liabilities $ 22,043 Right-of-use assets obtained in exchange for operating lease obligations 34,198 Supplemental balance sheet information related to leases was as follows: September 25, 2020 Operating Leases Weighted-average remaining lease term 6.5 years Weighted-average discount rate 3.1 % The following tables presents the maturity analysis of lease liabilities (in thousands): September 25, 2020 Operating Leases Fiscal 2021 $ 18,098 Fiscal 2022 14,868 Fiscal 2023 13,299 Fiscal 2024 12,718 Fiscal 2025 8,898 Thereafter 22,484 Total undiscounted lease payments 90,365 Less: imputed interest (9,228) Total lease liabilities $ 81,137 September 27, 2019 Operating Leases Remainder of Fiscal 2020 $ 17,231 Fiscal 2021 9,329 Fiscal 2022 7,191 Fiscal 2023 6,218 Fiscal 2024 4,499 Thereafter 12,355 Total undiscounted lease payments $ 56,823 As Lessor As a lessor, we lease our Dolby Cinema product solution to exhibitors, Dolby Voice equipment to cloud conferencing service providers, and lease or sublease real estate properties. The terms of these leases vary from 4 to 10 years. Lease components consist of fixed payments and/or variable lease payments based on contracted percentages of revenue. Generally, leases do not grant any right to the lessee to purchase the underlying asset at the end of the lease term, with the exception of certain leases of Dolby Voice equipment for which the customer has the option to purchase the equipment at fair value. Dolby Cinema lease arrangements have options to extend the lease term at expiration by increments ranging from 1 to 5 years. Assets provided under an operating lease are carried at cost within property, plant and equipment and depreciated over the useful life of these asset using the straight-line method. Fixed operating lease payments are recognized on a straight-line basis over the lease term to other income for our real estate property and to revenue for all other leases. Variable lease payments received under our Dolby Cinema operating leases are computed as shares of lessees' box office revenues and recognized to revenue in the period that box office sales occur. Lease incentive payments we make to lessees are amortized as a reduction in revenue over the lease term. For the year ended September 25, 2020, variable operating lease income was $10.4 million and fixed operating lease income was $3.7 million. If a lease is classified as a sales-type lease, the carrying amount of the asset is derecognized from property, plant and equipment and a net investment in the lease is recorded. The net investment in the lease is measured at commencement date as the sum of the lease receivable and the estimated residual value of the equipment. The unguaranteed residual value of the equipment was determined as the estimated carrying value of the asset at the end of the lease term had the asset been depreciated on a straight-line basis. At September 25, 2020, the unguaranteed residual value of sales-type leases was $0.7 million. Selling profit or loss arising from a sales-type lease is recorded at lease commencement and presented on a gross basis. Over the term of the lease, we recognize interest income on the net investment in the lease and any variable lease payments, which is not material and not included in the net investment in the lease. The following table presents the maturity analysis of fixed lease payments due to Dolby (in thousands): September 25, 2020 Operating Leases Sales-Type Leases Fiscal 2021 $ 3,361 $ 1,605 Fiscal 2022 3,393 1,605 Fiscal 2023 3,354 1,603 Fiscal 2024 1,821 796 Fiscal 2025 78 395 Thereafter 346 395 Total undiscounted cash flows 12,353 6,399 Less: present value of lease payments (recognized as lease receivables) (4,821) Difference $ 1,578 |
Goodwill & Intangible Assets
Goodwill & Intangible Assets | 12 Months Ended |
Sep. 25, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill & Intangible Assets Goodwill The following table outlines changes to the carrying amount of goodwill (in thousands): Goodwill Balance at September 28, 2018 $ 327,982 Acquired goodwill 9,367 Translation adjustments (2,520) Balance at September 27, 2019 $ 334,829 Acquired goodwill — Translation adjustments 2,116 Balance at September 25, 2020 $ 336,945 Intangible Assets Intangible assets are stated at their original cost less accumulated amortization. Intangible assets subject to amortization consisted of the following (in thousands): September 25, 2020 September 27, 2019 Intangible Assets, Net Cost Accumulated Net Cost Accumulated Net Acquired patents and technology $ 342,637 $ (206,123) $ 136,514 $ 338,075 $ (176,867) $ 161,208 Customer relationships 64,740 (49,062) 15,678 64,728 (45,510) 19,218 Other intangibles 22,969 (22,730) 239 22,902 (22,437) 465 Total $ 430,346 $ (277,915) $ 152,431 $ 425,705 $ (244,814) $ 180,891 During fiscal 2020 and 2019, we purchased various patents and developed technology for purchase consideration of $2.9 million and $27.3 million, and upon acquisition, these intangible assets had a weighted-average useful life of 14.0 years and 7.9 years, respectively. These acquisitions facilitate our R&D efforts, technologies and potential product offerings. Amortization expense for our intangible assets is included in cost of licensing, cost of products, R&D and S&M expenses in our consolidated statements of operations. Amortization expense was $29.5 million, $29.7 million, and $26.5 million in fiscal 2020, 2019 and 2018, respectively. As of September 25, 2020, expected amortization expense of our intangible assets in future periods was as follows (in thousands): Fiscal Year Amortization Expense 2021 $ 30,913 2022 28,307 2023 23,929 2024 21,899 2025 6,845 Thereafter 40,538 Total $ 152,431 |
Stockholders' Equity And Stock-
Stockholders' Equity And Stock-Based Compensation | 12 Months Ended |
Sep. 25, 2020 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |
Stockholders' Equity And Stock-Based Compensation | . Stockholders' Equity & Stock-Based Compensation We provide stock-based awards as a form of compensation for employees, officers and directors. We have issued stock-based awards in the form of stock options and RSUs under our equity incentive plans, as well as shares under our ESPP. Common Stock - Class A and Class B Our Board of Directors has authorized two classes of common stock, Class A and Class B. At September 25, 2020, we had authorized 500,000,000 Class A shares and 500,000,000 Class B shares. At September 25, 2020, we had 64,167,725 shares of Class A common stock and 36,128,720 shares of Class B common stock issued and outstanding. Holders of our Class A and Class B common stock have identical rights, except that holders of our Class A common stock are entitled to one vote per share and holders of our Class B common stock are entitled to ten votes per share. Shares of Class B common stock can be converted to shares of Class A common stock at any time at the option of the stockholder and automatically convert upon sale or transfer, except for certain transfers specified in our amended and restated certificate of incorporation. 2020 Stock Incentive Plan Following shareholder approval in January 2005, our 2005 Stock Plan was adopted by our Board of Directors on February 16, 2005. In February 2020, our stockholders approved the name change of our 2005 Stock Plan to the 2020 Stock Plan and certain other changes described in our proxy statement for our 2020 annual meeting of stockholders. Our 2020 Stock Plan, as amended and restated, provides for the ability to grant incentive stock options, non-qualified stock options, restricted stock, RSUs, stock appreciation rights, deferred stock units, performance units, performance bonus awards, and performance shares. A total of 55.0 million shares of our Class A common stock have been authorized for issuance under the 2020 Stock Plan in total since inception of the plan. For awards granted prior to February 2011, any shares subject to an award with a per share price less than the fair market value of our Class A common stock on the date of grant and any shares subject to an outstanding RSU award will be counted against the authorized share reserve as two shares for every one share subject to the award, and if returned to the 2020 Stock Plan, such shares will be counted as two shares for every one share returned. For those awards granted from February 2011 onward, any shares subject to an award with a per share price less than the fair market value of our Class A common stock on the date of grant and any shares subject to an outstanding RSU award will be counted against the authorized share reserve as 1.6 shares for every one share subject to the award, and if returned to the 2020 Stock Plan, such shares will be counted as 1.6 shares for every one share returned. Stock Options. Stock options are granted at fair market value on the date of grant. Options granted to employees and officers from June 2008 onward generally vest over four years, with 25% of the shares subject to the option becoming exercisable on the one-year anniversary of the date of grant and the balance of the shares vesting in equal monthly installments over the following 36 months. These options expire on the earlier of ten years after the date of grant or three months after termination of service. All options granted vest over the requisite service period and upon the exercise of stock options, we issue new shares of Class A common stock under the 2020 Stock Plan. Our 2020 Stock Plan also allows us to grant stock awards which vest based on the satisfaction of specific performance criteria. Performance-Based Stock Options. In fiscal 2016, we began granting PSOs to our executive officers with shares of our Class A common stock underlying such options. The contractual term for the PSOs is seven years, with vesting contingent upon market-based performance conditions, representing the achievement of specified Dolby annualized TSR targets at the end of a three-year measurement period following the date of grant. If the minimum conditions are met, the PSOs earned will cliff vest on the third anniversary of the grant date, upon certification of achievement of the performance conditions by our Compensation Committee. Anywhere from 0% to 125% of the shares subject to a PSO may vest based on achievement of the performance conditions at the end of the three In valuing the PSOs, which will be recognized as compensation cost, we used a Monte Carlo valuation model. Aside from the use of an expected term for the PSOs commensurate with their shorter contractual term, the nature of the valuation inputs used in the Monte Carlo valuation model were consistent with those used to value our non-performance based options granted under the 2020 Stock Plan. Compensation cost is being amortized on a straight-line basis over the requisite service period. On December 15, 2018, we granted PSOs to our executive officers exercisable for an aggregate of 241,100 shares at the target award amount, which would be exercisable up to an aggregate of 301,375 shares at 125% of the target award amount. On December 15, 2017, we granted PSOs to our executive officers exercisable for an aggregate of 264,000 shares at the target award amount, which would be exercisable up to an aggregate of 330,000 shares at 125% of the target award amount. On December 15, 2016, we granted PSOs to our executive officers exercisable for an aggregate of 276,199 shares at the target award amount, which would be exercisable for an aggregate of up to 345,248 shares at 125% of the target award amount. On December 15, 2015, we granted PSOs to our executive officers, which vested in December 2018 at 125% of the target award amount, for an aggregate of 334,623 shares. As of September 25, 2020, PSOs which would be exercisable for an aggregate of 726,639 shares at the target award amount (994,455 shares at 125% of the target award amount) were outstanding. The following table summarizes information about stock options issued under our 2020 Stock Plan: Shares Weighted-Average Weighted-Average Aggregate Intrinsic Value (1) (in thousands) (in years) (in thousands) Options outstanding at September 27, 2019 7,201 $ 48.03 Grants 1,150 67.77 Exercises (1,671) 40.16 Forfeitures and cancellations (81) 62.20 Options outstanding at September 25, 2020 6,599 53.30 6.2 $ 80,636 Options vested and expected to vest at September 25, 2020 6,345 52.80 6.1 80,486 Options exercisable at September 25, 2020 4,026 $ 45.98 5.2 76,557 (1) Aggregate intrinsic value is based on the closing price of our Class A common stock on September 25, 2020 of $64.99 and excludes the impact of options that were not in-the-money. Restricted Stock Units. Beginning in fiscal 2008, we began granting RSUs to certain directors, officers and employees under our 2020 Stock Plan. Awards granted to employees and officers generally vest over four years, with equal annual cliff-vesting. Awards granted to directors prior to November 2010 generally vest over three years, with equal annual cliff-vesting. Awards granted after November 2010 and prior to fiscal 2014 to new directors vest over approximately two years, with 50% vesting per year, while awards granted from November 2010 onward to ongoing directors generally vest over approximately one year. Awards granted to new directors from fiscal 2014 onward vest on the earlier of the first anniversary of the award’s date of grant, or the day immediately preceding the date of the next annual meeting of stockholders that occurs after the award’s date of grant. Our 2020 Stock Plan also allows us to grant RSUs that vest based on the satisfaction of specific performance criteria. At each vesting date, the holder of the award is issued shares of our Class A common stock. Compensation expense from these awards is equal to the adjusted fair market value of our Class A common stock on the date of grant, discounted to account for dividend payments forgone during the vesting period, and recognized on a straight-line basis over the requisite service period. Performance-Based Restricted Stock Units (PSUs). In the first quarter of fiscal 2020, we began granting PSUs to our executive officers with shares of our Class A common stock underlying such awards, which would vest for an aggregate of 62,000 shares at the target amount (124,000 shares at 200% of the target award amount). The terms of the PSU Agreement adopted in the first quarter fiscal 2020 provide for the grant of performance-based restricted stock units to our executive officers contingent on Dolby's achievement of annualized TSR targets measured against a comparator index over a three-year performance period following the date of grant. Anywhere from 0% to 200% of eligible restricted stock units may vest based on achievement of the performance conditions at the end of the three-year performance period. In valuing the PSUs which will be recognized as compensation cost, we used a Monte Carlo valuation model. Compensation cost is being amortized on a straight-line basis over the requisite service period. The following table summarizes information about RSUs issued under our 2020 Stock Plan: Shares Weighted-Average (in thousands) Non-vested at September 27, 2019 2,805 $ 58.84 Granted 1,395 65.76 Vested (1,078) 52.71 Forfeitures (143) 61.16 Non-vested at September 25, 2020 2,979 $ 62.70 The fair value as of the respective vesting dates of RSUs were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Restricted stock units - vest date fair value $ 72,426 $ 69,956 $ 64,755 Employee Stock Purchase Plan . Our plan allows eligible employees to have up to 10 percent of their eligible compensation withheld and used to purchase Class A common stock, subject to a maximum of $25,000 worth of stock purchased in a calendar year or no more than 1,000 shares in an offering period, whichever is less. An offering period consists of successive six one Stock Option Valuation Assumptions We use the Black-Scholes option pricing model to determine the estimated fair value of employee stock options at the date of the grant. The Black-Scholes model includes inputs that require us to make certain estimates and assumptions regarding the expected term of the award, as well as the future risk-free interest rate, and the volatility of our stock price over the expected term of the award. Expected Term. The expected term of an award represents the estimated period of time that options granted will remain outstanding, and is measured from the grant date to the date at which the option is either exercised or canceled. Our determination of the expected term involves an evaluation of historical terms and other factors such as the exercise and termination patterns of our employees who hold options to acquire our Class A common stock, and is based on certain assumptions made regarding the future exercise and termination behavior. Risk-Free Interest Rate. The risk-free interest rate is based on the yield curve of United States Treasury instruments in effect on the date of grant. In determining an estimate for the risk-free interest rate, we use average interest rates based on these instruments’ constant maturities with a term that approximates and corresponds with the expected term of our awards. Expected Stock Price Volatility. The expected volatility represents the estimated volatility in the price of our Class A common stock over a time period that approximates the expected term of the awards, and is determined using a blended combination of historical and implied volatility. Historical volatility is representative of the historical trends in our stock price for periods preceding the measurement date for a period that is commensurate with the expected term. Implied volatility is based upon externally traded option contracts of our Class A common stock. Dividend Yield. The dividend yield is based on our anticipated dividend payout over the expected term of our option awards. Dividend declarations and the establishment of future record and payment dates are subject to the Board of Directors’ continuing determination that the dividend policy is in the best interests of our stockholders. The dividend policy may be changed or canceled at the discretion of the Board of Directors at any time. The weighted-average assumptions used in the determination of the fair value of our stock options were as follows: Fiscal Year Ended September 25, September 27, September 28, Expected term (in years) 4.91 4.90 5.06 Risk-free interest rate 1.6 % 2.7 % 2.2 % Expected stock price volatility 24.2 % 22.9 % 22.6 % Dividend yield 1.3 % 1.1 % 1.1 % The following table summarizes the weighted-average fair value (per share) of stock options granted and the total intrinsic value of stock options exercised (in thousands): Fiscal Year Ended September 25, September 27, September 28, Stock options granted - weighted-average grant date fair value $ 13.76 $ 14.16 $ 13.19 Stock options exercised - intrinsic value 47,267 33,226 63,973 Stock-Based Compensation Expense Stock-based compensation expense for equity awards granted to employees is determined by estimating their fair value on the date of grant, and recognizing that value as an expense on a straight-line basis over the requisite service period in which our employees earn the awards. Compensation expense related to these equity awards is recognized net of estimated forfeitures, which reduce the expense recorded in the consolidated statements of operations. The selection of applicable estimated forfeiture rates is based on an evaluation of trends in our historical forfeiture data with consideration for other potential driving factors. If in subsequent periods actual forfeitures significantly differ from our initial estimates, we will revise such estimates accordingly. The estimated annual forfeiture rates used for awards granted were 9.74%, 9.78% and 9.91% in fiscal 2020, 2019, and 2018, respectively. The following two tables separately present stock-based compensation expense both by award type and classification in our consolidated statements of operations (in thousands): Expense - By Award Type Fiscal Year Ended September 25, September 27, September 28, Stock options $ 16,718 $ 17,742 $ 21,083 Restricted stock units 65,235 54,650 46,162 Employee stock purchase plan 4,675 4,188 4,004 Total stock-based compensation 86,628 76,580 71,249 Estimated benefit from income taxes (14,090) (12,884) (12,595) Total stock-based compensation, net of tax $ 72,538 $ 63,696 $ 58,654 Expense - By Income Statement Classification Fiscal Year Ended September 25, September 27, September 28, Cost of products and services $ 2,072 $ 1,710 $ 1,574 Research and development 25,634 23,191 19,515 Sales and marketing 31,915 28,137 24,997 General and administrative 27,007 23,542 25,163 Total stock-based compensation 86,628 76,580 71,249 Estimated benefit from income taxes (14,090) (12,884) (12,595) Total stock-based compensation, net of tax $ 72,538 $ 63,696 $ 58,654 The tax benefit that we recognize from shares issued under our ESPP is excluded from the tables above. This benefit was as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Tax benefit - shares issued under ESPP $ 409 $ 353 $ 577 Unrecognized Compensation Expense. At September 25, 2020, total unrecognized compensation expense associated with employee stock options expected to vest was approximately $23.8 million, which is expected to be recognized over a weighted-average period of 2.2 years. At September 25, 2020, total unrecognized compensation expense associated with RSUs expected to vest was approximately $121.8 million, which is expected to be recognized over a weighted-average period of 2.3 years. Common Stock Repurchase Program In November 2009, we announced a stock repurchase program ("program"), providing for the repurchase of our Class A common stock. The following table summarizes the initial amount of authorized repurchases as well as additional repurchases approved by our Board of Directors as of September 25, 2020 (in thousands): Authorization Period Authorization Amount Fiscal 2010: November 2009 $ 250,000 Fiscal 2010: July 2010 300,000 Fiscal 2011: July 2011 250,000 Fiscal 2012: February 2012 100,000 Fiscal 2015: October 2014 200,000 Fiscal 2017: January 2017 200,000 Fiscal 2018: July 2018 350,000 Fiscal 2019: July 2019 350,000 Total $ 2,000,000 Stock repurchases under the program may be made through open market transactions, negotiated purchases, or otherwise, at times and in amounts that we consider appropriate. The timing of repurchases and the number of shares repurchased depend upon a variety of factors, including price, regulatory requirements, the rate of dilution from our equity compensation plans and other market conditions. The program does not have a specified expiration date, and can be limited, suspended or terminated at our discretion at any time without prior notice. Shares repurchased under the program will be returned to the status of authorized but unissued shares of Class A common stock. As of September 25, 2020, the remaining authorization to purchase additional shares is approximately $187 million. The following table provides information regarding share repurchase activity under the program in fiscal 2020: Quarterly Repurchase Activity Shares Cost (1) Average Price Paid Per Share (2) (in thousands) Q1 - Quarter ended December 27, 2019 432,042 $ 30,003 $ 69.44 Q2 - Quarter ended March 27, 2020 1,015,481 71,669 70.57 Q3 - Quarter ended June 26, 2020 474,340 27,081 57.09 Q4 - Quarter ended September 25, 2020 642,696 44,989 70.00 Total 2,564,559 $ 173,742 (1) Cost of share repurchases includes the price paid per share and applicable commissions. (2) Average price paid per share excludes commission costs. Dividend Program The following table summarizes dividends declared under the program during fiscal 2020: Fiscal Period Announcement Date Record Date Payment Date Cash Dividend Per Common Share Dividend Payment Fiscal 2020 Q1 - Quarter ended December 27, 2019 January 29, 2020 February 10, 2020 February 20, 2020 $ 0.22 $22.2 million Q2 - Quarter ended March 27, 2020 May 4, 2020 May 18, 2020 May 27, 2020 $ 0.22 $22.1 million Q3 - Quarter ended June 26, 2020 August 3, 2020 August 17, 2020 August 26, 2020 $ 0.22 $22.1 million Q4 - Quarter ended September 25, 2020 November 12, 2020 November 24, 2020 December 4, 2020 $ 0.22 $22.1 million (1) (1) The dividend payment amount is estimated based on the number of shares of our Class A and Class B common stock that we estimate will be outstanding as of the Record Date. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Sep. 25, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Other comprehensive income consists of three components: unrealized gains or losses on our AFS marketable investment securities, gains and losses on derivatives in cash flow hedge relationships not yet recognized in earnings, and the gains and losses from the translation of assets and liabilities denominated in non-U.S. dollar functional currencies. Until realized and reported as a component of net income, these comprehensive income items accumulate and are included within accumulated other comprehensive income, a subsection within stockholders’ equity in our consolidated balance sheets. Unrealized gains and losses on our investment securities are reclassified from AOCI into earnings when realized upon sale, and are determined based on specific identification of securities sold. Unrealized gains and losses on our cash flow hedges are reclassified from AOCI into earnings when the hedged operating expenses are recognized which is also when the gains and losses are realized. The following table summarizes the changes in the accumulated balances during the period, and includes information regarding the manner in which the reclassifications out of AOCI into earnings affect our consolidated statements of operations (in thousands): Fiscal Year Ended Fiscal Year Ended September 25, 2020 September 27, 2019 Investment Securities Cash Flow Hedges Currency Translation Adjustments Total Investment Securities Cash Flow Hedges Currency Translation Adjustments Total Beginning Balance $ 2,198 $ — $ (22,823) $ (20,625) $ (2,948) $ — $ (12,884) $ (15,832) Other comprehensive income before reclassifications: Unrealized gains/(losses) (5,393) 5,270 — (123) 5,131 (176) — 4,955 Foreign currency translation gains/(losses) (1) — — 7,420 7,420 — — (9,500) (9,500) Income tax effect - benefit/(expense) (87) (581) 22 (646) 37 — (439) (402) Net of tax (5,480) 4,689 7,442 6,651 5,168 (176) (9,939) (4,947) Amounts reclassified from AOCI into earnings: Realized gains/(losses) (1) 4,939 (894) — 4,045 (43) 176 — 133 Income tax effect - benefit/(expense) (2) (839) 174 — (665) 21 — — 21 Net of tax 4,100 (720) — 3,380 (22) 176 — 154 Net current-period other comprehensive income/(loss) (1,380) 3,969 7,442 10,031 5,146 — (9,939) (4,793) Ending Balance $ 818 $ 3,969 $ (15,381) $ (10,594) $ 2,198 $ — $ (22,823) $ (20,625) (1) Realized gains or losses, if any, from the sale of our AFS investment securities or from foreign currency translation adjustments are included within other income/expense, net in our consolidated statements of operations. Realized gains or losses on foreign currency contracts designated as cash flow hedges are included in operating expenses on the consolidated statements of operations. (2) The income tax benefit or expense is included within provision for income taxes in our consolidated statements of operations. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 25, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic EPS is computed by dividing net income attributable to Dolby Laboratories, Inc. by the number of weighted-average shares of Class A and Class B common stock outstanding during the period. Through application of the treasury stock method, diluted EPS is computed in the same manner, except that the number of weighted-average shares outstanding is increased by the number of potentially dilutive shares from employee incentive plans during the period. Basic and diluted EPS are computed independently for each fiscal quarter and year-to-date period, which involves the use of different weighted-average share count figures relating to quarterly and annual periods. As a result, and after factoring the effect of rounding to the nearest cent per share, the sum of all four quarter-to-date EPS figures may not equal year-to-date EPS. Potentially dilutive shares represent the hypothetical number of incremental shares issuable under the assumed exercise of outstanding stock options (both vested and unvested) and vesting of outstanding RSUs. The calculation of dilutive shares outstanding excludes securities that would have an antidilutive effect on EPS. The following table sets forth the computation of basic and diluted EPS attributable to Dolby Laboratories, Inc. (in thousands, except per share amounts): Fiscal Year Ended September 25, September 27, September 28, Numerator: Net income attributable to Dolby Laboratories, Inc. $ 231,363 $ 255,151 $ 41,746 Denominator: Weighted-average shares outstanding—basic 100,564 101,629 103,377 Potential common shares from options to purchase common stock 1,400 1,922 2,370 Potential common shares from restricted stock units 941 1,021 1,231 Potential common shares from ESPP 39 — — Weighted-average shares outstanding—diluted 102,944 104,572 106,978 Net income per share attributable to Dolby Laboratories, Inc.: Basic $ 2.30 $ 2.51 $ 0.40 Diluted $ 2.25 $ 2.44 $ 0.39 Antidilutive awards excluded from calculation: Stock options 3,209 2,340 1,043 Restricted stock units 2 1 6 ESPP 1 — — |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 25, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax expense, deferred tax assets and liabilities, and unrecognized tax benefits reflect management's best assessment of estimated current and future liabilities. We are subject to income taxes in both the United States and numerous foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax expense. Income Tax Provision The following two tables present the components of our income before provision for income taxes by geographic region and the portion of our provision for income taxes classified as current and deferred (in thousands): Fiscal Year Ended September 25, September 27, September 28, United States $ 32,426 $ 60,500 $ 27,819 Foreign 207,289 221,807 168,555 Total $ 239,715 $ 282,307 $ 196,374 Fiscal Year Ended September 25, September 27, September 28, Current: Federal $ (48,517) $ 14,144 $ 40,624 State 735 394 333 Foreign 61,153 64,335 59,383 Total current 13,371 78,873 100,340 Deferred: Federal (4,674) (55,793) 43,377 State (111) 1,007 17,484 Foreign (490) 2,715 (7,132) Total deferred (5,275) (52,071) 53,729 Provision for income taxes $ 8,096 $ 26,802 $ 154,069 Repatriation of Undistributed Foreign Earnings As a result of the Tax Act, foreign accumulated earnings that were subject to the mandatory Transition Tax as of December 31, 2017, can be repatriated to the U.S. without incurring further U.S. federal tax. The Tax Act moves towards a modified territorial tax system through the provision of a 100% dividend received deduction for the foreign-source portions of dividends received from controlled foreign subsidiaries. As a result, we have reevaluated our historical assertion and determined that we no longer consider a vast majority of these earnings to be indefinitely reinvested. During the fiscal year, we repatriated $300 million of foreign subsidiary earnings which were exempt from foreign withholding tax. As of September 25, 2020, the total undistributed earnings of our foreign subsidiaries were approximately $244 million. The unrecognized deferred tax liability on the portion of the undistributed earnings considered indefinitely reinvested is not material. Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, using enacted tax rates in effect for the year in which the differences are expected to reverse. A summary of the tax effects of the temporary differences were as follows (in thousands): Fiscal Year Ended September 25, September 27, Deferred income tax assets: Investments $ 1,899 $ 2,099 Inventories 6,863 4,041 Net operating loss 3,450 2,050 Accrued expenses 13,839 13,917 Stock-based compensation 17,397 17,189 Revenue recognition 4,374 4,410 Depreciation and amortization 45,572 19,988 Lease liability 17,655 — Research and development credits 31,795 28,777 Foreign tax credits 12,161 10,777 Deemed repatriated earnings tax benefit 9,788 33,357 Other 4,765 4,705 Total gross deferred income tax assets 169,558 141,310 Less: valuation allowance (30,416) (24,884) Total deferred income tax assets 139,142 116,426 Deferred income tax liabilities: Right of use asset (17,360) — Intangibles (2,901) (2,351) Deferred income tax assets, net $ 118,881 $ 114,075 Net Operating Losses ("NOL") and Tax Credit Carryforwards At September 25, 2020, the NOL carryforwards for U.S. federal and California were $4.5 million and $9.0 million, respectively, and will start to expire in fiscal 2034 and 2029, respectively. Additionally, we had foreign NOL carryforwards of $9.8 million as of September 25, 2020, an amount which is not subject to expiration. At September 25, 2020, we had foreign tax credit and federal R&D tax credit carryforwards of $8.5 million and $6.9 million, respectively, which will start to expire in fiscal 2029 and fiscal 2039. We had California R&D tax credits of $34.7 million, which will carry forward indefinitely, and foreign R&D tax credits of $2.6 million, which will start to expire in fiscal 2021 and fiscal 2029. Valuation Allowance As of September 25, 2020, a $25.8 million valuation allowance was recorded against California deferred tax assets and a $4.6 million valuation allowance was recorded against foreign deferred tax assets for which ultimate realization of its future benefits is uncertain. Effective Tax Rate Each period, the combination of multiple different factors can impact our effective tax rate. These factors include both recurring items such as tax rates and the relative amount of income earned in foreign jurisdictions, as well as discrete items that may occur in, but are not necessarily consistent between periods. A reconciliation of the federal statutory tax rate to our effective tax rate on income from continuing operations was as follows: Fiscal Year Ended September 25, September 27, September 28, Federal statutory rate 21.0 % 21.0 % 24.6 % State income taxes, net of federal effect 0.2 0.2 0.7 Stock-based compensation (2.7) (1.9) (5.2) Research and development tax credits (3.0) (4.7) (4.0) Foreign-derived intangible income deduction (2.2) (0.7) — U.S. tax on foreign entities 3.1 0.6 — Foreign rate differential (1.8) (4.4) (9.4) Increase (decrease) unrecognized tax benefit (12.9) 3.4 3.7 Tax Act — (7.6) 53.3 Change in Valuation Allowance — 1.5 8.3 Other 1.7 2.1 6.5 Effective tax rate 3.4 % 9.5 % 78.5 % Our effective tax rate was 3.4% in fiscal 2020, compared with our federal statutory rate of 21.0%, and with our effective tax rate in fiscal 2019 of 9.5%. The decrease in our effective tax rate is primarily related to a benefit in fiscal 2020 from reversals of unrecognized tax benefits. Our effective tax rate was 78.5% in fiscal 2018 and was 9.5% in fiscal 2019. The effective tax rate in fiscal 2018 reflects the impact from the Tax Act, most notably the remeasurement of net deferred tax assets and the Transition Tax on the accumulated earnings of our foreign subsidiaries, and the establishment of a valuation allowance against California tax credits in fiscal 2018. In addition, our federal statutory tax rate decreased from a blended rate of 24.6% in fiscal 2018 to 21% in fiscal 2019. Uncertain Tax Positions As of September 25, 2020, the total amount of gross unrecognized tax benefits was $60.7 million, of which $42.0 million, if recognized, would reduce our effective tax rate. Our liability decreased from fiscal 2019 primarily due to lapse in the statute of limitations in fiscal 2020. Our liability for unrecognized tax benefits is classified within other non-current liabilities in our consolidated balance sheets. Over the next twelve months, we estimate that this amount could be reduced by $24.0 million as a result of the expiration of certain statute of limitations. Aggregate changes in the balance of gross unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Beginning Balance $ 108,539 $ 102,009 $ 98,665 Gross increases - tax positions taken during prior years 5,504 115 — Gross decreases - tax positions taken during prior years — — (2,209) Gross increases - tax positions taken during current year 7,509 6,822 9,580 Gross decreases - settlements with tax authorities during current year (37) — (130) Lapse of statute of limitations (60,824) (407) (3,897) Ending Balance $ 60,691 $ 108,539 $ 102,009 Classification of Interest and Penalties We include interest and penalties related to gross unrecognized tax benefits within our provision for income taxes. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued are reduced in the period that such determination is made and are reflected as a reduction of the overall income tax provision. In fiscal year 2020, our current tax provision was decreased by interest expense of $6.3 million, while in fiscal year 2019, our current tax provision was increased by interest expense of $3.5 million. Accrued interest and penalties are included within the related tax liability line item in our consolidated balance sheets. Our accrued interest and penalties on unrecognized tax benefits as of September 25, 2020 and September 27, 2019 were as follows (in thousands): Fiscal Year Ended September 25, September 27, Accrued interest $ 4,017 $ 10,315 Accrued penalties 45 44 Total $ 4,062 $ 10,359 We continue to monitor the progress of ongoing income tax controversies and the impact, if any, of the expected tolling of the statute of limitations in various taxing jurisdictions. We file income tax returns in the U.S. federal, states, and foreign jurisdictions. The material income tax jurisdictions are the U.S. federal, California, New York, and the Netherlands. We are currently under audit by the State of Oregon for fiscal years 2016 through 2018 and Spain for fiscal years 2014 and 2015. The statute remains open for fiscal years subsequent to 2014 for U.S. federal, and 2014 and onward for state and foreign purposes. Therefore, these periods may be subject to examination by the tax authorities. Management does not believe that the outcome of any ongoing examination will have a material impact on our consolidated financial statements. We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If resolution of any tax issues addressed in our current audits are inconsistent with management’s expectations, we may be required to adjust our tax provision for income taxes in the period such resolution occurs. |
Restructuring
Restructuring | 9 Months Ended |
Jun. 28, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring | Restructuring Restructuring charges/(credits) recorded in our statements of operations represent costs associated with separate individual restructuring plans implemented in various fiscal periods. Costs arising from these actions, including fluctuations in related balances between fiscal periods, are based on the nature of activities under the various plans. Fiscal 2019 Restructuring Events. In fiscal 2019, we recorded charges as a result of our early exit of a leased facility. In addition, we recorded charges associated with a strategic reorganization of our marketing function that resulted in severance and other related benefits provided to the affected employees. As a result of these events, we recorded a total of $36.6 million in restructuring costs in fiscal 2019 and they are reflected as such in the accompanying consolidated statement of operations. The table presented below summarizes changes in restructuring accruals under these plans (in thousands): Severance Leased facility exit costs Fixed assets write-off Other associated costs Total Balance at September 27, 2019 $ 128 $ 15,723 $ — $ — $ 15,851 Restructuring charges — 1,821 — — 1,821 Cash payments (75) (22,119) — — (22,194) Non-cash and other adjustments (53) 4,575 — — 4,522 Balance at September 25, 2020 $ — $ — $ — $ — $ — Accruals for restructuring charges incurred for the restructuring plans described above are included within accrued liabilities in our consolidated balance sheets while restructuring charges are included within restructuring charges in our consolidated statements of operations. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Sep. 25, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments & Contingencies In the ordinary course of business, we enter into contractual agreements with third parties that include non-cancelable payment obligations, for which we are liable in future periods. These arrangements can include terms binding us to minimum payments and/or penalties if we terminate the agreement for any reason other than an event of default as described by the agreement. The following table presents a summary of our contractual obligations and commitments as of September 25, 2020 (in thousands): Payments Due By Fiscal Period Fiscal Fiscal Fiscal Fiscal Fiscal Thereafter Total Naming rights $ 7,915 $ 8,015 $ 8,116 $ 8,219 $ 8,322 $ 61,277 $ 101,864 Purchase obligations 17,305 2,991 139 — — — 20,435 Donation commitments 4,803 155 155 155 155 1,002 6,425 Total $ 30,023 $ 11,161 $ 8,410 $ 8,374 $ 8,477 $ 62,279 $ 128,724 Naming Rights. We are party to an agreement for naming rights and related benefits with respect to the Dolby Theatre in Hollywood, California, the location of the Academy Awards®. The term of the agreement is 20 years, over which we will make payments on a semi-annual basis until fiscal 2032. Our payment obligations are conditioned in part on the Academy Awards being held and broadcast from the Dolby Theatre. Our payment obligations may be suspended or reduced in certain circumstances, including protracted closure of the Dolby Theatre. Purchase Obligations. Purchase obligations primarily consist of our commitments made under agreements to purchase goods and services related to Dolby Cinema and for purposes that include IT and telecommunications, marketing and professional services, and manufacturing and other R&D activities. Donation Commitments. Our donation commitments relate to non-cancelable obligations that consist of maintenance services and installation of imaging and audio products in exchange for various marketing, branding, and publicity benefits. The recipients of these donations participate in or promote the cinema and entertainment industry and our commitments vary in length, lasting up to 15 years. Indemnification Clauses. On a limited basis, our contractual agreements will contain a clause under which we agree to provide indemnification to the counterparty, most commonly to licensees in connection with licensing arrangements that include our IP. We have also entered into indemnification agreements with our officers, directors, and certain employees, and our certificate of incorporation and bylaws contain similar indemnification obligations. Additionally, and although not a contractual requirement, we have at times elected to defend our licensees from third party IP infringement claims. Since the terms and conditions of our contractual indemnification clauses do not explicitly specify our obligations, we are unable to reasonably estimate the maximum potential exposure for which we could be liable. Furthermore, we have not historically made any payments in connection with any such obligation and believe there to be a remote likelihood that any potential exposure in future periods would be of a material amount. As a result, no amounts have been accrued in our consolidated financial statements with respect to the contingent aspect of these indemnities. |
Operating Segments and Geograph
Operating Segments and Geographic Data | 12 Months Ended |
Sep. 25, 2020 | |
Segments, Geographical Areas [Abstract] | |
Operating Segments and Geographic Data | Operating Segments & Geographic Information Operating Segments Operating segments are defined as components of an enterprise for which separate financial information is available, and which are evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and assess performance. Our CODM is our Chief Executive Officer. Reporting segments are operating segments exceeding specified revenue, profit or loss, or asset thresholds for which separate disclosure of information is necessary. We operate as a single reporting segment. This reflects the fact that our CODM continues to evaluate our financial information and resources, and continues to assess the performance of these resources, on a consolidated basis. All required financial segment information is therefore included in our consolidated financial statements. Geographic Information The methods to determine revenue by geographic region for each of the three categories included within total revenue in our consolidated statements of operations are described within the table presented below. Revenue Category Basis For Determining Geographic Location Licensing Region in which our licensees’ headquarters are located Products Destination to which our products are shipped Services Location in which the relevant services are performed The following tables present selected information regarding total revenue by geographic location (amounts presented in thousands). Revenue Composition - United States & International Fiscal Year Ended Location September 25, September 27, September 28, United States $ 460,972 $ 449,203 $ 353,235 International 700,820 792,417 701,365 Total revenue $ 1,161,792 $ 1,241,620 $ 1,054,600 Revenue Concentration - Significant Individual Geographic Regions Fiscal Year Ended Location September 25, September 27, September 28, United States 40 % 36 % 33 % South Korea 12 % 12 % 17 % China 20 % 20 % 15 % Japan 9 % 11 % 13 % Europe 10 % 12 % 12 % Taiwan 2 % 4 % 3 % Other 7 % 5 % 7 % Total 100 % 100 % 100 % Long-lived tangible assets, net of accumulated depreciation, by geographic region were as follows (in thousands): Location September 25, September 27, United States $ 453,889 $ 460,370 International 88,074 77,062 Total long-lived tangible assets, net of accumulated depreciation $ 541,963 $ 537,432 |
Legal Matters
Legal Matters | 12 Months Ended |
Sep. 25, 2020 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Legal Matters | Legal Matters We are involved in various legal proceedings that occasionally arise in the normal course of business. These can include claims of alleged infringement of IP rights, commercial, employment, and other matters. In our opinion, resolution of these proceedings is not expected to have a material adverse impact on our operating results or financial condition. Given the unpredictable nature of legal proceedings, it is possible that an unfavorable resolution of one or more such proceedings could materially affect our future operating results or financial condition in a particular period, including as a result of required changes to our licensing terms, monetary penalties, and other potential consequences. However, based on the information known by us as of the date of this filing and the rules and regulations applicable to the preparation of our consolidated financial statements, any such amounts are either immaterial, or it is not possible to provide an estimate of any such potential losses. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 25, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Parties We maintain contractual agreements relating to certain entities affiliated with the Dolby family, who is considered a related party as our principal stockholder. These jointly-owned entities were established for the purpose of acquiring and leasing commercial property in the U.S. and U.K. primarily for our operational use. Although the entities affiliated with the Dolby family are the limited member or LP in each of these entities, they have a controlling interest based on holding majority economic ownership. We are the managing member or general partner in each of these affiliated entities, and with the exception of isolated instances where portions of these facilities are leased to third parties, we occupy the majority of the space. Therefore, we have consolidated the entities’ assets and liabilities and results of operations in our consolidated financial statements. The share of earnings and net assets of the entities attributable to the limited member or LP, as the case may be, is reflected as controlling interest in our consolidated financial statements. Our interests in these consolidated affiliated entities and the location of the property leased to Dolby Laboratories as of September 25, 2020 were as follows: Entity Name Minority Ownership Interest Location Of Properties Dolby Properties Brisbane, LLC 49.0 % Brisbane, California Dolby Properties Burbank, LLC 49.0 % Burbank, California Dolby Properties, LP 10.0 % Wootton Bassett, England We lease from our principal stockholder a commercial office building located at 100 Potrero Avenue in San Francisco, California under a term that expires on October 31, 2024. In fiscal 2019, we ceased occupancy of the facility, and do not intend to re-occupy the locations. As a result of our ceased occupancy, we incurred $33.5 million in restructuring charges recorded as operating expenses in our consolidated statement of operations. Related party rent expense included in operating expenses in our consolidated statements of operations were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Related party rent expense and restructuring charges included in operating expenses $ 126 $ 16,360 $ 3,483 Distributions. Distributions made by the jointly-owned real estate entities to our principal stockholder were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Distributions to principal stockholder $ (283) $ (1,015) $ (1,022) |
Retirement Plans
Retirement Plans | 12 Months Ended |
Sep. 25, 2020 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Retirement Plans | Retirement Plans We maintain a tax-qualified Section 401(k) retirement plan for employees in the United States and similar plans in foreign jurisdictions. Under the plan, employees are eligible to receive matching contributions and profit-sharing contributions. We also maintain a SERP, a non-qualified, employer-funded defined contribution retirement plan which was terminated in fiscal 2005. Retirement plan expenses, which are included in cost of products, cost of services, R&D, S&M, and G&A expense in our consolidated statements of operations, were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Retirement plan expenses $ 25,257 $ 23,375 $ 23,439 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Sep. 25, 2020 | |
Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data (unaudited) | . Selected Quarterly Financial Data The following table presents selected unaudited quarterly financial information from fiscal 2020 and 2019 (in thousands, except per share amounts): Fiscal Year 2020 Fiscal Year 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue: Licensing $ 257,683 $ 328,865 $ 235,125 $ 256,904 $ 260,279 $ 310,308 $ 271,897 $ 264,796 Products and services 34,194 22,950 11,784 14,287 42,097 27,950 30,262 34,031 Total revenue 291,877 351,815 246,909 271,191 302,376 338,258 302,159 298,827 Cost of revenue 37,315 36,830 29,888 42,465 38,629 36,575 39,690 45,960 Gross margin 254,562 314,985 217,021 228,726 263,747 301,683 262,469 252,867 Income/(loss) before taxes and controlling interest 54,454 110,779 39,990 34,492 74,254 110,002 41,800 56,251 Net income/(loss) attributable to Dolby Laboratories $ 48,753 $ 88,496 $ 67,285 $ 26,829 $ 98,219 $ 73,440 $ 39,574 $ 43,918 Earnings per share: Basic $ 0.49 $ 0.88 $ 0.67 $ 0.27 $ 0.96 $ 0.72 $ 0.39 $ 0.44 Diluted $ 0.47 $ 0.86 $ 0.66 $ 0.26 $ 0.93 $ 0.70 $ 0.38 $ 0.43 Weighted-average shares outstanding: Basic 100,336 100,854 100,593 100,473 102,677 102,141 101,218 100,481 Diluted 103,078 102,773 102,075 102,722 106,130 104,587 103,717 102,945 |
Basis Of Presentation (Policies
Basis Of Presentation (Policies) | 12 Months Ended |
Sep. 25, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles Of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Dolby Laboratories, Inc. and our wholly owned subsidiaries. In addition, we have consolidated the financial results of jointly owned affiliated companies in which our principal stockholder has a controlling interest. We report these controlling interests as a separate line in our consolidated statements of operations as net income attributable to controlling interest and in our consolidated balance sheets as a controlling interest. We eliminate all intercompany accounts and transactions upon consolidation. |
Use of Estimates | Use of Estimates The preparation of our financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported and disclosed in our consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include estimated shipments by our licensees for which we are owed a sales–based royalty. These estimates involve the use of historical data and judgment for several key attributes including industry estimates of expected shipments, the percentage of markets using our technologies, and average sale prices. Our estimates of royalty-based revenue also take into consideration the macroeconomic effect of global events, such as the COVID-19 pandemic or other natural disasters which may impact our licensees' supply chain activities as well as demand for shipments. Additional significant items subject to such estimates and assumptions include estimated selling prices for performance obligations within revenue arrangements; valuation allowances for accounts receivable; carrying values of inventories and certain property, plant, and equipment, goodwill and intangible assets; fair values of investments; accrued liabilities including liabilities for unrecognized tax benefits, deferred income tax assets and liabilities, and stock-based compensation. Actual results could differ from our estimates. |
Fiscal Year | Fiscal YearOur fiscal year is a 52 or 53 week period ending on the last Friday in September. The fiscal years presented herein include the 52 week periods ended September 25, 2020 (fiscal 2020), September 27, 2019 (fiscal 2019), and September 28, 2018 (fiscal 2018). |
Reclassifications | Reclassifications We have reclassified certain prior period amounts within our consolidated financial statements and accompanying notes to conform to our current period presentation. These reclassifications did not affect total revenue, operating income, operating cash flows or net income. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 25, 2020 | |
Accounting Policies [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk Our financial instruments that are exposed to concentrations of credit risk principally consist of cash, cash equivalents, investments, and accounts receivable. Our investment portfolio consists of investment grade securities diversified amongst security types, industries, and issuers. All our securities are held in custody by a recognized financial institution. Our policy limits the amount of credit exposure to a maximum of 5% to any one issuer, except for the U.S. Treasury, and we believe no significant concentration risk exists with respect to these investments. We also mitigate counterparty risk through entering into derivative contracts with high-credit-quality financial institutions. The majority of our licensing revenue is generated from customers outside of the U.S. We manage this risk by performing regular evaluations of the creditworthiness of our licensing customers. In fiscal 2020, 2019, and 2018, we did not have any individual customers whose revenue exceeded 10% of our total revenue. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all short-term highly liquid investments with original maturities of 90 days or less from the date of purchase to be cash equivalents. Cash and cash equivalents primarily consist of funds held in general checking accounts, money market accounts, commercial paper, and government bonds. |
Restricted Cash | Restricted CashRestricted cash on our consolidated balance sheets consists of cash contributed by Dolby and third-party licensors to Via Licensing Corporation, our wholly-owned subsidiary, that may only be used for licensor enforcement actions or licensee compliance activities related to certain Via-administered patent pools, as well as to disperse costs associated with any audit of Via Licensing Corporation for the Wideband Code Division Multiple Access (W-CDMA) patent pool |
Investments | Investments All of our investments are classified as available-for-sale securities, with the exception of our mutual fund investments held in our supplemental retirement plan, which are classified as trading securities. Investments that have an original maturity of 91 days or more at the date of purchase and a current maturity of less than one year are classified as short-term investments, while investments with a current maturity of more than one year are classified as long-term investments. Our investments are recorded at fair value in our consolidated balance sheets. Unrealized gains and losses on our AFS securities are reported as a component of AOCI, while realized gains and losses, other-than-temporary impairments, and credit losses are reported as a component of net income. Upon sale, gains and losses are reclassified from AOCI into earnings, and are determined based on specific identification of securities sold. We evaluate our investment portfolio for credit losses and other-than-temporary impairments by comparing the fair value with the cost basis for each of our investment securities. An investment is impaired if the fair value is less than its cost basis. If any portion of the impairment is deemed to be the result of a credit loss, the credit loss portion of the impairment is included as a component of net income. If we deem it probable that we will not recover the full cost basis of the security, the security is other-than-temporarily impaired, and the impairment loss is recognized as a component of net income. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We maintain a provision for estimated losses on receivables resulting from our customers' inability to make required payments. In determining the provision, we evaluate the collectability of our accounts receivable based upon a variety of factors. In cases where we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, we record a specific allowance against amounts due, and thereby reduce the net recognized receivable to the amount reasonably believed to be collectible. For all other customers, we recognize allowances for doubtful accounts based on our actual historical write-off experience in conjunction with the length of time the receivables are past due, geographic risk and the current business environment. Actual future losses from uncollectible accounts may differ from our estimates. |
Inventories | Inventories Inventories are accounted for using the first-in, first-out method, and are valued at the lower of cost and net realizable value. We evaluate our ending inventories for estimated excess quantities and obsolescence. Our evaluation includes the analysis of future sales demand by product within specific time horizons. Inventories in excess of projected future demand are written down to their net realizable value. In addition, we assess the impact of changing technology on our inventory balances and write-off inventories that are considered obsolete. Write-downs and write-offs of inventory are recorded as a cost of products in our consolidated statements of operations. We classify inventory that we do not expect to sell within twelve months as other non-current assets in our consolidated balance sheets. |
Property, Plant, and Equipment | Property, Plant, and Equipment PP&E is stated at cost less accumulated depreciation. Depreciation expense is recognized on a straight-line basis according to estimated useful lives assigned to each of our different categories of PP&E as summarized within the following table: PP&E Category Useful Life Computer equipment and software 3 to 5 years Machinery and equipment 3 to 8 years Furniture and fixtures 5 to 8 years Leasehold improvements Lesser of useful life or related lease term Equipment provided under operating leases 15 years Buildings and building improvements 20 to 40 years We capitalize certain costs incurred during the construction phase of a project or asset into construction-in-progress until the construction process is complete. Once the related asset is placed into service, we transfer its carrying value into the appropriate fixed asset category and begin depreciating the value over its useful life. Equipment Provided Under Operating Leases. In arrangements that we assess as operating leases, we recognize our cinema equipment installed at third party sites as a fixed asset and depreciate the asset on a straight-line basis. |
Internal Use Software | Internal Use Software. We account for the costs of computer software developed for internal use by capitalizing costs of materials and external consultants. These costs are included in PP&E, net of accumulated amortization in our consolidated balance sheets. Our capitalized internal use software costs are typically amortized on a straight-line basis over estimated useful lives of three |
Goodwill, Intangible Assets, and Long-Lived Assets | Goodwill, Intangible Assets, and Long-Lived Assets We test goodwill for impairment annually during our third fiscal quarter and whenever events or changes in circumstances indicate that the carrying amount may be impaired. We perform a qualitative assessment as a determinant for whether the two-step annual goodwill impairment test should be performed. For fiscal 2020, we completed our annual goodwill impairment assessment in the fiscal quarter ended June 26, 2020. We determined in our qualitative review that it is more likely than not that the fair value of our reporting unit is substantially in excess of the respective carrying amount. Accordingly, there was no impairment, and the two-step goodwill impairment test was not required. We did not incur any goodwill impairment losses in any of the periods presented. Intangible assets are stated at their original cost less accumulated amortization, and those with definite lives are amortized over their estimated useful lives. Our intangible assets principally consist of acquired technology, patents, trademarks, customer relationships and contracts, the majority of which are amortized on a straight-line basis over their useful lives using a range from three We review long-lived assets, including intangible assets, for impairment whenever events or a change in circumstances indicate an asset’s carrying value may not be recoverable. Recoverability of an asset is measured by comparing its carrying value to the total future undiscounted cash flows that the asset is expected to generate. If it is determined that an asset is not recoverable, an impairment loss is recorded in the amount by which the carrying value of the asset exceeds its estimated fair value. |
Revenue Recognition | Revenue Recognition We enter into revenue arrangements with our customers to license technologies, trademarks and patents for sound, imaging and voice solutions, and to sell products and services. We recognize revenue when we satisfy a performance obligation by transferring control over the use of a license, product, or service to a customer. For additional financial information and a summary our accounting policy, refer to Note 3. "Revenue Recognition" to our consolidated financial statements. |
Cost of Revenue | Cost of Revenue Cost of licensing. Cost of licensing primarily consists of amortization expenses associated with purchased intangible assets and intangible assets acquired in business combinations. Cost of licensing also includes IP royalty obligations to third parties, depreciation of our Dolby Cinema equipment provided under operating leases in collaborative arrangements, and direct fees incurred. Cost of products and services. Cost of products primarily consists of the cost of materials related to products sold, applied labor, and manufacturing overhead. Our cost of products also includes third party royalty obligations paid to license IP that we include in our products. Cost of services primarily consists of the personnel and personnel-related costs of employees performing our professional services, and those of outside consultants, and reimbursable expenses incurred on behalf of customers. |
Stock-Based Compensation | Stock-Based Compensation We measure expenses associated with all employee stock-based compensation awards using a fair-value method and record such expense in our consolidated financial statements on a straight-line basis over the requisite service period. |
Advertising and Promotional Costs | Advertising and Promotional Costs Advertising and promotional costs are charged to S&M expense as incurred. Our advertising and promotional costs were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Advertising and promotional costs $ 61,125 $ 49,118 $ 49,519 |
Income Taxes | Income Taxes We use the asset and liability method, under which deferred income tax assets and liabilities are determined based upon the difference between the financial statement carrying amounts and the tax bases of assets and liabilities, and NOL carryforwards are measured using the enacted tax rate expected to apply to taxable income in the years in which the differences are expected to be reversed. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is additionally dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities and projected future taxable income in making this assessment, and we record a valuation allowance to reduce our deferred tax assets when it's more-likely-than-not that some portion or all of the deferred tax assets will not be realized. We record an unrecognized tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the tax authorities. We include interest and penalties related to gross unrecognized tax benefits within our provision for income taxes. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued are reversed in the period that such determination is made and are reflected as a reduction of the overall income tax provision. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards We continually assess any ASUs or other new accounting pronouncements issued by the FASB to determine their applicability and impact on us. Where it is determined that a new accounting pronouncement will result in a change to our financial reporting, we take the appropriate steps to ensure that such changes are properly reflected in our consolidated financial statements or notes thereto. Adopted Standards Leases. In the first quarter of fiscal 2020, we adopted ASU 2016-02, Leases (ASC 842 ) along with all subsequent applicable ASU clarifications and improvements , which requires lessees to recognize leases on balance sheet and disclose key information about leasing arrangements. We adopted ASC 842 using the modified retrospective transition method and used the effective date as the date of initial application. Consequently, financial information is not updated and the disclosures required under ASC 842 are not provided for dates and periods prior to implementation. ASC 842 provides a number of optional practical expedients in transition. We elected the “package of practical expedients,” which permits us not to reassess under ASC 842 our prior conclusions about lease identification, lease classification and initial direct costs. In addition, we account for lease and non-lease components as a single lease component. Operating leases are included in operating lease right-of-use assets and in current and non-current operating lease liabilities on our consolidated balance sheets. As a lessee, the adoption of ASC 842 resulted in the recording of Operating lease right-of-use ("ROU") assets and Operating lease liabilities of $62.1 million and $64.6 million, respectively, as of September 28, 2019. The difference between the operating lease assets and liabilities was recorded as an adjustment to Other non-current liabilities, primarily related to deferred rent and other lease incentives. As a lessor, the adoption of ASC 842 did not have a material impact. The adoption of ASC 842 did not impact Retained Earnings. Income Taxes: Comprehensive Income. In the first quarter of fiscal 2020, we adopted ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. We elected to not reclassify the stranded tax effects to retained earnings as they were not material to Dolby's consolidated financial statements. Standards Not Yet Adopted Collaborative Arrangements. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 , which clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, ASU 2018-18 precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. This standard will be effective for Dolby beginning September 26, 2020. While we have a number of collaborative arrangements, we do not believe that this standard will have a material impact on our consolidated financial statements. Financial Instruments. In June 2016, the FASB issued ASU 2016-13, Financial Instruments (Topic 326): Measurement of Credit Losses on Financial Instruments , which modifies the measurement of expected credit losses of certain financial instruments, including trade receivables, contract assets, and lease receivables. This standard will be effective for Dolby beginning September 26, 2020. We do not believe that this standard will have a material impact on our consolidated financial statements. Income Taxes. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Revenue Recognition | Revenue Recognition We enter into revenue arrangements with our customers to license technologies, trademarks and patents for sound, imaging and voice solutions, and to sell products and services. We recognize revenue when we satisfy a performance obligation by transferring control over the use of a license, product, or service to a customer. A. Identification of the Contract or Contracts with Customers We generally determine that a contract with a customer exists upon the execution of an agreement and after consideration of collectability, which could include an evaluation of the customer's payment history, the existence of a standby letter-of-credit between the customer’s financial institution and our financial institution, public financial information, and other factors. At contract inception, we also evaluate whether two or more non-standard agreements with a customer should be combined and accounted for as a single contract. B. Identification of Performance Obligations in a Contract We generate revenues principally from the following sources, which represent performance obligations in our contracts with customers: • Licensing. We license our technologies, including patents, to a range of customers who incorporate them into their products for enhanced audio, imaging and voice functionality across broadcast, mobile, CE, PC, gaming, and other markets. • Product Sales. We design and provide audio and imaging products for the cinema, television, broadcast, communications, and entertainment industries. • Services. We provide various services to support theatrical and television production for cinema exhibition, broadcast, and home entertainment, including equipment training, mixing room alignment, equalization, as well as audio, color and light image calibration. • PCS. We provide PCS for products sold and for equipment leased, and we support the implementation of our licensing technologies in our licensees’ products. • Equipment Leases. We collaborate with established cinema exhibitors to offer Dolby Cinema, a branded premium cinema offering for movie audiences by leasing equipment and licensing our intellectual property. We also lease hardware that facilitates the Dolby conferencing experience, including the Dolby Conference Phone, and the Dolby Voice Room solution. • Licensing Administration Fees. We generate service fees for managing patent pools on behalf of third party patent owners through our wholly-owned subsidiary, Via Licensing Corporation. Some of our revenue arrangements include multiple performance obligations, such as hardware, software, support and maintenance, and extended warranty services. We evaluate whether promised products and services are distinct performance obligations. The majority of our arrangements with multiple performance obligations pertain to our digital cinema server and processor sales that include the following distinct performance obligations to which we allocate portions of the transaction price based on their stand-alone selling price: • Digital cinema server hardware and embedded software, which is highly dependent on and highly interrelated with the hardware. Accordingly, the hardware and embedded software represent a single performance obligation. • The right to support and maintenance, which is included with the purchase of the digital cinema server hardware, is a distinct performance obligation. • The right to receive commissioning services is a distinct performance obligation within the sale of the Dolby Atmos Cinema Processor. These services consist of the review of venue designs specifying proposed speaker placement as well as calibration services performed for installed speakers to ensure optimal playback. C. Determination of Transaction Price for Performance Obligations in a Contract After identifying the distinct performance obligations, we determine the transaction price in accordance with the terms of the underlying executed contract which may include variable consideration such as discounts, rebates, refunds, rights of returns, and incentives. We assess and update, if necessary, the amount of variable consideration to which we are entitled for each reporting period. At the end of each reporting period, we estimate and accrue a liability for returns and adjustments as a reduction to revenue based on several factors, including past returns history. With the exception of our sales-based royalties, we evaluate whether a significant financing component exists when we recognize revenue in advance of customer payments that occur over time. For example, some of our licensing arrangements include payment terms greater than one year from when we transfer control of our IP to a licensee and the receipt of the final payment for that IP. If a significant financing component exists, we classify a portion of the transaction price as interest income, instead of recognizing all of the transaction price as revenue. We do not adjust the transaction price for the effects of financing if, at contract inception, the period between the transfer of control to a customer and final payment is expected to be one year or less. D. Allocation of Transaction Price to Distinct Performance Obligations in a Contract For our sales-based royalties where the license is the predominant item to which the royalties relate, we present all revenues as licensing. For revenue arrangements that include multiple performance obligations, we determine the stand-alone selling price for each distinct performance obligation based on the actual selling prices made to customers. If the performance obligation is not sold separately, we estimate the stand-alone selling price. We do so by considering market conditions such as competitor pricing strategies, customer specific information and industry technology lifecycles, internal conditions such as cost and pricing practices, or applying the residual approach method when the selling price of the good, most commonly a license, is highly variable or uncertain. Once the transaction price - including any variable consideration - has been determined, we allocate the transaction price to the performance obligations identified in the contract and recognize revenue as or when control is transferred for each distinct performance obligation. E. Revenue Recognition as Control is Transferred to a Customer We generate our licensing revenue by licensing our technologies and patents to various types of licensees, such as chip manufacturers ("implementation licensees"), consumer product manufacturers, software vendors, and communications service providers. Our revenue recognition policies for each of these arrangements are summarized below. Initial fees from implementation licensees. Implementation licensees incorporate our technologies into their chipsets that, once approved by Dolby, are available for purchase by OEMs for use in end-user products. Implementation licensees only pay us a nominal initial fee on contract execution as consideration for the ongoing services that we provide to assist in their implementation process. Revenues from these initial fees are recognized ratably over the contractual term as a component of licensing revenue. Sales-based licensing fees. In our royalty bearing licensing agreements with OEMs, control is transferred upon the later of contract execution or the contract’s effective date. We apply the royalty exception, which requires that we recognize sales-based royalties when the sales occur based on our estimates. These estimates involve the use of historical data and judgment for several key attributes including industry estimates of expected shipments, the percentage of markets using our technologies, and average sale prices. Generally, our estimates represent the current period’s shipments to which we expect our licensees to submit royalty statements in the following quarter. Upon receipt of royalty statements from the licensees with the actual reporting of sales-based royalties that we estimated previously, we record a favorable or unfavorable adjustment based on the difference, if any, between estimated and actual sales. In the first quarter of fiscal 2020, we recorded a favorable adjustment of approximately $9 million, which was primarily related to shipments that occurred in our fourth quarter of fiscal 2019 (July through September) and largely based on actual royalty statements received from licensees. In the second, third, and fourth quarters of fiscal 2020 we recorded favorable adjustments of $7 million, $11 million, and $26 million, respectively, each primarily related to shipments that occurred in the preceding fiscal quarter, and largely based on actual royalty statements received from licensees. Fixed and guaranteed licensing fees. In certain cases, our arrangements require the licensee to pay fixed, non-refundable fees. In these cases, control is transferred, and fees are recognized upon the later of contract execution or the effective date. Additionally, and separate from initial fees from implementation licensees, our sales- and usage-based licensing agreements include a nominal fee, which is also recognized at a point in time in which control of the IP has been transferred. Revenues from these arrangements are included as a component of licensing revenue. Recoveries. Through compliance efforts, we identify under-reported licensed activity related to non-current periods. We may record a favorable or unfavorable revenue adjustment in connection with the findings from these compliance efforts generally upon resolution with the licensee through agreement of the findings, or upon receipt of the licensee’s correction statement. Revenues from these arrangements are included as a component of licensing revenue. We undertake activities aimed at identifying potential unauthorized uses of our technologies, which when successful result in the recognition of revenue. Recoveries stem from third parties who agree to remit payments to us based on past use of our technology. In these scenarios, a legally binding contract did not exist at time of use of our technology, and therefore, we recognize revenue recoveries upon execution of the agreement as that is the point in time to which a contract exists and control is transferred. These revenues are classified as licensing revenue. In general, we classify legal costs associated with activities aimed at identifying potential unauthorized uses of our technologies, auditing existing licensees, and on occasion, pursuing litigation as S&M in our consolidated statements of operations. We recognize licensing revenue gross of withholding taxes, which our licensees remit directly to their local tax authorities, and for which we receive a partial foreign tax credit in our income tax provision. In addition to our licensing arrangements, we also enter into arrangements to deliver products and services. Product Sales. Revenue from the sale of products is recognized when the customer obtains control of the promised good or service, which is generally upon shipment. Payments are generally made within 90 days of sale. Services. We provide various services, such as engineering services related to movie soundtrack print mastering, equipment training and maintenance, mixing room alignment, equalization, and image calibration, which we bill on a fixed fee and time and materials basis. Most of these services are of a short duration and are recognized as control of the performance obligations are transferred which is when the related services are performed. Collaborative Arrangements. We collaborate with established cinema exhibitors to offer Dolby Cinema, a branded premium cinema offering for movie audiences. Under such collaborations, Dolby and the exhibitor are both active participants, and share the risks and rewards associated with the business. Accordingly, these collaborations are governed by revenue sharing arrangements under which Dolby receives revenue based on box office receipts, reported to Dolby by exhibitor partners on a monthly or quarterly basis, our proprietary designs and trademarks as well as for the use of our equipment at the exhibitor’s venue. The use of our product solution meets the definition of a lease, and for the related portion of Dolby's share of revenue, we apply ASC 842, Leases , and recognize revenue based on monthly box office reports from exhibitors. Our revenue share is recognized as licensing revenue in our consolidated statements of operations. In addition, we also enter into hybrid agreements where a portion involves guaranteed payments, which in some cases result in classifying the arrangement as a sales-type lease. In such arrangements, we consider control to transfer at the point in time to which we have installed and tested the equipment, at which point we record such guaranteed payments as product revenue. Via Administration Fee. We generate service fees for managing patent pools on behalf of third party patent owners through our wholly-owned subsidiary, Via Licensing Corporation. As an agent to licensors in the patent pool, Via receives a share of the sales-based royalty that the patent pool licensors earn from licensees. As such, we apply the sales-based royalty exception as the service provided is directly related to the patent pool licensors’ provision of IP, which results in recognition based on estimates of the licensee’s quarter shipments that use the pool’s patents. In addition to sales-based royalties, Via also has contracts where the fees are fixed. The revenue share Via receives from licensors on fixed fee contracts is recognized over the term in which we are providing services associated with the fixed fee contract. We recognize our administrative fees net of the consideration paid to the patent licensors in the pool as licensing revenue. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Accounting Policies [Abstract] | |
Schedule Of Property, Plant, And Equipment, Estimated Useful Life | PP&E is stated at cost less accumulated depreciation. Depreciation expense is recognized on a straight-line basis according to estimated useful lives assigned to each of our different categories of PP&E as summarized within the following table: PP&E Category Useful Life Computer equipment and software 3 to 5 years Machinery and equipment 3 to 8 years Furniture and fixtures 5 to 8 years Leasehold improvements Lesser of useful life or related lease term Equipment provided under operating leases 15 years Buildings and building improvements 20 to 40 years |
Advertising and Promotional Costs | Advertising and promotional costs are charged to S&M expense as incurred. Our advertising and promotional costs were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Advertising and promotional costs $ 61,125 $ 49,118 $ 49,519 |
Schedule of Foreign Currency Translation Gains (Losses) | These losses were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Foreign currency transaction (losses) $ (1,361) $ (260) $ (823) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents a summary of the composition of our revenue for all periods presented: Fiscal Year-To-Date Ended September 25, 2020 September 27, 2019 Revenue Licensing $ 1,078,577 93 % $ 1,107,280 89 % Products and services 83,215 7 % 134,340 11 % Total revenue $ 1,161,792 100 % $ 1,241,620 100 % The following table presents the composition of our licensing revenue for all periods presented: Fiscal Year-To-Date Ended September 25, 2020 September 27, 2019 Revenue By Market Broadcast $ 439,415 41 % $ 474,147 43 % Mobile 226,972 21 % 193,052 17 % CE 152,608 14 % 154,399 14 % PC 132,302 12 % 113,597 10 % Other 127,280 12 % 172,085 16 % Total licensing revenue $ 1,078,577 100 % $ 1,107,280 100 % Fiscal Year-To-Date Ended September 25, 2020 September 27, 2019 Revenue By Geographic Location United States $ 460,972 40 % $ 449,203 36 % International 700,820 60 % 792,417 64 % Total revenue $ 1,161,792 100 % $ 1,241,620 100 % |
Contract with Customer, Asset and Liability | The following table presents a summary of the balances to which contract assets and liabilities related to revenue are recorded for all periods presented: September 25, 2020 September 27, 2019 Change ($) Change (%) Accounts receivable, net $ 180,340 $ 189,115 $ (8,775) (5) % Contract assets 161,357 195,651 (34,294) (18) % Contract liabilities - current 15,436 19,991 (4,555) (23) % Contract liabilities - non-current 24,342 24,404 (62) — % |
Composition Of Certain Financ_2
Composition Of Certain Financial Statement Captions (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Composition Of Certain Financial Statement Captions [Abstract] | |
Schedule Of Accounts Receivable | Accounts Receivable, Net September 25, September 27, Trade accounts receivable $ 147,618 $ 151,996 Accounts receivable from patent administration program licensees 48,630 46,894 Accounts receivable, gross 196,248 198,890 Less: allowance for doubtful accounts (15,908) (9,775) Total $ 180,340 $ 189,115 |
Schedule Of Allowance For Doubtful Accounts | Allowance for Doubtful Accounts Beginning Balance Charged to Deductions Ending Balance For fiscal year ended: September 28, 2018 $ 2,967 $ 2,413 $ (122) $ 5,258 September 27, 2019 5,258 4,523 (6) 9,775 September 25, 2020 9,775 7,689 (1,556) 15,908 |
Schedule Of Inventories | Inventories Inventories September 25, September 27, Raw materials $ 3,770 $ 8,031 Work in process 9,214 4,872 Finished goods 12,566 19,428 Total $ 25,550 $ 32,331 |
Schedule Of Prepaid Expenses And Other Current Assets | Prepaid Expenses And Other Current Assets September 25, September 27, Prepaid expenses $ 17,884 $ 17,997 Other current assets 35,138 21,707 Total $ 53,022 $ 39,704 |
Schedule Of Accrued Liabilities | Accrued Liabilities September 25, September 27, Accrued royalties $ 901 $ 2,957 Amounts payable to patent administration program partners 60,427 58,899 Accrued compensation and benefits 89,684 78,716 Accrued professional fees 10,344 19,216 Unpaid PP&E additions 15,102 15,332 Accrued customer refunds 10,053 24,299 Other accrued liabilities 33,463 68,725 Total $ 219,974 $ 268,144 |
Schedule Of Other Non-Current Liabilities | Other Non-Current Liabilities September 25, September 27, Supplemental retirement plan obligations $ 4,181 $ 3,466 Non-current tax liabilities (1) 85,943 136,323 Other liabilities 32,030 37,673 Total $ 122,154 $ 177,462 |
Investments and Fair Value Meas
Investments and Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured on Recurring Basis | Our cash and investment portfolio consisted of the following (in thousands): September 25, Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 856,740 $ — $ — $ 856,740 $ 856,740 $ — $ — Cash equivalents: Commercial paper 900 — — 900 — 900 — Money market funds 214,111 — — 214,111 214,111 — — Government bonds 125 — — 125 125 — — Cash and cash equivalents 1,071,876 — — 1,071,876 1,070,976 900 — Short-term investments: Certificate of deposit 2,277 1 — 2,278 — 2,278 — U.S. agency securities 999 12 — 1,011 — 1,011 — Government bonds 5,118 47 — 5,165 1,370 3,795 — Commercial paper 4,727 4 — 4,731 — 4,731 — Corporate bonds 18,754 87 (3) 18,838 — 18,838 — Municipal debt securities 14,828 97 — 14,925 — 14,925 — Short-term investments 46,703 248 (3) 46,948 1,370 45,578 — Long-term investments: U.S. agency securities 2,214 56 — 2,270 — 2,270 — Government bonds 5,137 80 — 5,217 1,633 3,584 — Corporate bonds 24,657 419 (7) 25,069 — 25,069 — Municipal debt securities 15,220 203 (6) 15,417 — 15,417 — Other long-term investments (1) 4,176 — — 4,176 — — — Long-term investments 51,404 758 (13) 52,149 1,633 46,340 — Total cash, cash equivalents, and investments $ 1,169,983 $ 1,006 $ (16) $ 1,170,973 $ 1,073,979 $ 92,818 $ — Investments held in supplemental retirement plan: Assets 4,279 — — 4,279 4,279 — — Included in prepaid expenses and other current assets & other non-current assets Liabilities 4,279 — — 4,279 4,279 — — Included in accrued liabilities & other non-current liabilities Currency derivatives as hedge instruments: Assets: Included in other current assets — 4,267 — 4,267 — 4,267 — Assets: included in other non-current assets — 369 — 369 — 369 — Liabilities: Included in other accrued expenses — — (79) (79) — (79) — (1) Other long-term investments as of September 25, 2020 is comprised of one equity method investment which is not carried at fair value of $4.2 million. September 27, Cost Unrealized Estimated Fair Value Gains Losses Total Level 1 Level 2 Level 3 Cash and cash equivalents: Cash $ 680,287 $ — $ — $ 680,287 $ 680,287 $ — $ — Cash equivalents: Corporate bonds 1,000 — — 1,000 — 1,000 — Money market funds 115,270 — — 115,270 115,270 — — Government bonds 653 — — 653 653 — — Cash and cash equivalents 797,210 — — 797,210 796,210 1,000 — Short-term investments: Certificate of deposit 1,265 1 — 1,266 — 1,266 — U.S. agency securities 10,973 8 (9) 10,972 — 10,972 — Government bonds 8,381 11 (1) 8,391 5,784 2,607 — Commercial paper 6,347 9 — 6,356 — 6,356 — Corporate bonds 76,802 172 (34) 76,940 — 76,940 — Municipal debt securities 15,210 18 (7) 15,221 — 15,221 — Short-term investments 118,978 219 (51) 119,146 5,784 113,362 — Long-term investments: Asset backed securities 400 2 — 402 — 402 — U.S. agency securities 7,102 146 — 7,248 — 7,248 — Government bonds 23,563 187 — 23,750 19,670 4,080 — Corporate bonds 134,360 1,700 — 136,060 — 136,060 — Municipal debt securities 10,315 87 (6) 10,396 — 10,396 — Other long-term investments (1) 1,731 — — 1,731 — — — Long-term investments 177,471 2,122 (6) 179,587 19,670 158,186 — Total cash, cash equivalents, and investments $ 1,093,659 $ 2,341 $ (57) $ 1,095,943 $ 821,664 $ 272,548 $ — Investments held in supplemental retirement plan: Assets 3,564 — — 3,564 3,564 — — Included in prepaid expenses and other current assets & other non-current assets Liabilities 3,564 — — 3,564 3,564 — — Included in accrued liabilities & other non-current liabilities Currency derivatives as hedge instruments: Liabilities: Included in other accrued expenses — — (242) (242) — (242) — |
Available for sale Securities, Unrealized Loss Position | The following table presents the gross unrealized losses and fair value for those AFS securities that were in an unrealized loss position as of September 25, 2020 and September 27, 2019 (in thousands): September 25, 2020 September 27, 2019 Less Than 12 Months Greater Than 12 Months Less Than 12 Months Greater Than 12 Months Investment Type Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Certificate of deposit $ — $ — $ — $ — $ 300 $ — $ — $ — U.S. agency securities — — — — — — 4,787 (9) Government bonds — — — — 1,426 — — — Corporate bonds 7,076 (10) — — 7,647 (3) 27,078 (32) Municipal debt securities 2,505 (6) — — 9,552 (13) 900 — Total $ 9,581 $ (16) $ — $ — $ 18,925 $ (16) $ 32,765 $ (41) |
Available-for-sale Securities | Investment Maturities. The following table summarizes the amortized cost and estimated fair value of the AFS securities within our investment portfolio based on stated maturities as of September 25, 2020 and September 27, 2019, which are recorded within cash equivalents and both short and long-term investments in our consolidated balance sheets (in thousands): September 25, 2020 September 27, 2019 Range of maturity Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ 261,839 $ 262,085 $ 238,186 $ 238,354 Due in 1 to 2 years 29,328 29,814 93,948 94,899 Due in 2 to 3 years 17,900 18,159 81,793 82,957 Total $ 309,067 $ 310,058 $ 413,927 $ 416,210 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | As of September 25, 2020 and September 27, 2019, PP&E consisted of the following (in thousands): Property, Plant, & Equipment September 25, September 27, Land $ 41,955 $ 41,918 Buildings and building improvements 283,617 282,924 Leasehold improvements 83,764 66,730 Machinery and equipment 126,942 128,525 Computer equipment and software 230,800 219,455 Furniture and fixtures 31,845 34,191 Equipment provided under operating leases 199,561 161,372 Construction-in-progress 19,545 19,616 Property, plant, and equipment, gross 1,018,029 954,731 Less: accumulated depreciation (476,066) (417,299) Property, plant, & equipment, net $ 541,963 $ 537,432 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Leases [Abstract] | |
Lease Cost Components, Supplemental Cash Flow Information and Supplemental Balance Sheet Information Schedules | The components of lease expense were as follows (in thousands): September 25, 2020 Lease cost Operating lease cost $ 23,570 Variable lease cost 1,175 Total lease cost $ 24,745 Supplemental cash flow information related to leases was as follows (in thousands): September 25, 2020 Other information Cash paid for amounts included in the measurement of operating lease liabilities $ 22,043 Right-of-use assets obtained in exchange for operating lease obligations 34,198 Supplemental balance sheet information related to leases was as follows: September 25, 2020 Operating Leases Weighted-average remaining lease term 6.5 years Weighted-average discount rate 3.1 % |
Maturities of Lessee Lease Liabilities after Adoption of 842 Schedule | The following tables presents the maturity analysis of lease liabilities (in thousands): September 25, 2020 Operating Leases Fiscal 2021 $ 18,098 Fiscal 2022 14,868 Fiscal 2023 13,299 Fiscal 2024 12,718 Fiscal 2025 8,898 Thereafter 22,484 Total undiscounted lease payments 90,365 Less: imputed interest (9,228) Total lease liabilities $ 81,137 September 27, 2019 Operating Leases Remainder of Fiscal 2020 $ 17,231 Fiscal 2021 9,329 Fiscal 2022 7,191 Fiscal 2023 6,218 Fiscal 2024 4,499 Thereafter 12,355 Total undiscounted lease payments $ 56,823 |
Maturities of Lessee Lease Liabilities before Adoption of 842 Schedule | The following tables presents the maturity analysis of lease liabilities (in thousands): September 25, 2020 Operating Leases Fiscal 2021 $ 18,098 Fiscal 2022 14,868 Fiscal 2023 13,299 Fiscal 2024 12,718 Fiscal 2025 8,898 Thereafter 22,484 Total undiscounted lease payments 90,365 Less: imputed interest (9,228) Total lease liabilities $ 81,137 September 27, 2019 Operating Leases Remainder of Fiscal 2020 $ 17,231 Fiscal 2021 9,329 Fiscal 2022 7,191 Fiscal 2023 6,218 Fiscal 2024 4,499 Thereafter 12,355 Total undiscounted lease payments $ 56,823 |
Maturities of Lessor Operating Lease Payments Schedule | The following table presents the maturity analysis of fixed lease payments due to Dolby (in thousands): September 25, 2020 Operating Leases Sales-Type Leases Fiscal 2021 $ 3,361 $ 1,605 Fiscal 2022 3,393 1,605 Fiscal 2023 3,354 1,603 Fiscal 2024 1,821 796 Fiscal 2025 78 395 Thereafter 346 395 Total undiscounted cash flows 12,353 6,399 Less: present value of lease payments (recognized as lease receivables) (4,821) Difference $ 1,578 |
Maturities of Lessor Sales-Type Lease Payments Schedule | The following table presents the maturity analysis of fixed lease payments due to Dolby (in thousands): September 25, 2020 Operating Leases Sales-Type Leases Fiscal 2021 $ 3,361 $ 1,605 Fiscal 2022 3,393 1,605 Fiscal 2023 3,354 1,603 Fiscal 2024 1,821 796 Fiscal 2025 78 395 Thereafter 346 395 Total undiscounted cash flows 12,353 6,399 Less: present value of lease payments (recognized as lease receivables) (4,821) Difference $ 1,578 |
Goodwill & Intangible Assets (T
Goodwill & Intangible Assets (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table outlines changes to the carrying amount of goodwill (in thousands): Goodwill Balance at September 28, 2018 $ 327,982 Acquired goodwill 9,367 Translation adjustments (2,520) Balance at September 27, 2019 $ 334,829 Acquired goodwill — Translation adjustments 2,116 Balance at September 25, 2020 $ 336,945 |
Schedule of Finite-Lived Intangible Assets | Intangible assets are stated at their original cost less accumulated amortization. Intangible assets subject to amortization consisted of the following (in thousands): September 25, 2020 September 27, 2019 Intangible Assets, Net Cost Accumulated Net Cost Accumulated Net Acquired patents and technology $ 342,637 $ (206,123) $ 136,514 $ 338,075 $ (176,867) $ 161,208 Customer relationships 64,740 (49,062) 15,678 64,728 (45,510) 19,218 Other intangibles 22,969 (22,730) 239 22,902 (22,437) 465 Total $ 430,346 $ (277,915) $ 152,431 $ 425,705 $ (244,814) $ 180,891 |
Future Amortization Expense | As of September 25, 2020, expected amortization expense of our intangible assets in future periods was as follows (in thousands): Fiscal Year Amortization Expense 2021 $ 30,913 2022 28,307 2023 23,929 2024 21,899 2025 6,845 Thereafter 40,538 Total $ 152,431 |
Stockholders' Equity And Stoc_2
Stockholders' Equity And Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |
Summary Of Stock Options Issued To Officers, Directors, And Employees Under 2000 Stock Incentive Plan And 2005 Stock Plan | The following table summarizes information about stock options issued under our 2020 Stock Plan: Shares Weighted-Average Weighted-Average Aggregate Intrinsic Value (1) (in thousands) (in years) (in thousands) Options outstanding at September 27, 2019 7,201 $ 48.03 Grants 1,150 67.77 Exercises (1,671) 40.16 Forfeitures and cancellations (81) 62.20 Options outstanding at September 25, 2020 6,599 53.30 6.2 $ 80,636 Options vested and expected to vest at September 25, 2020 6,345 52.80 6.1 80,486 Options exercisable at September 25, 2020 4,026 $ 45.98 5.2 76,557 (1) Aggregate intrinsic value is based on the closing price of our Class A common stock on September 25, 2020 of $64.99 and excludes the impact of options that were not in-the-money. |
Summary Of Restricted Stock Units Issued To Officers, Directors And Employees Under 2005 Stock Incentive Plan | The following table summarizes information about RSUs issued under our 2020 Stock Plan: Shares Weighted-Average (in thousands) Non-vested at September 27, 2019 2,805 $ 58.84 Granted 1,395 65.76 Vested (1,078) 52.71 Forfeitures (143) 61.16 Non-vested at September 25, 2020 2,979 $ 62.70 |
Schedule of Share-Based Payment Fair Value by Vesting Date | The fair value as of the respective vesting dates of RSUs were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Restricted stock units - vest date fair value $ 72,426 $ 69,956 $ 64,755 |
Schedule Of Fair Value Of Stock-Based Awards Estimated Using Weighted-Average Assumptions | The weighted-average assumptions used in the determination of the fair value of our stock options were as follows: Fiscal Year Ended September 25, September 27, September 28, Expected term (in years) 4.91 4.90 5.06 Risk-free interest rate 1.6 % 2.7 % 2.2 % Expected stock price volatility 24.2 % 22.9 % 22.6 % Dividend yield 1.3 % 1.1 % 1.1 % |
Summary Of Weighted-Average Fair Value Of Stock Options Granted And Total Intrinsic Value Of Stock Options Exercised | The weighted-average assumptions used in the determination of the fair value of our stock options were as follows: Fiscal Year Ended September 25, September 27, September 28, Expected term (in years) 4.91 4.90 5.06 Risk-free interest rate 1.6 % 2.7 % 2.2 % Expected stock price volatility 24.2 % 22.9 % 22.6 % Dividend yield 1.3 % 1.1 % 1.1 % The following table summarizes the weighted-average fair value (per share) of stock options granted and the total intrinsic value of stock options exercised (in thousands): Fiscal Year Ended September 25, September 27, September 28, Stock options granted - weighted-average grant date fair value $ 13.76 $ 14.16 $ 13.19 Stock options exercised - intrinsic value 47,267 33,226 63,973 |
Schedule Of Stock-Based Compensation Expense By Plan | The following two tables separately present stock-based compensation expense both by award type and classification in our consolidated statements of operations (in thousands): Expense - By Award Type Fiscal Year Ended September 25, September 27, September 28, Stock options $ 16,718 $ 17,742 $ 21,083 Restricted stock units 65,235 54,650 46,162 Employee stock purchase plan 4,675 4,188 4,004 Total stock-based compensation 86,628 76,580 71,249 Estimated benefit from income taxes (14,090) (12,884) (12,595) Total stock-based compensation, net of tax $ 72,538 $ 63,696 $ 58,654 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Expense - By Income Statement Classification Fiscal Year Ended September 25, September 27, September 28, Cost of products and services $ 2,072 $ 1,710 $ 1,574 Research and development 25,634 23,191 19,515 Sales and marketing 31,915 28,137 24,997 General and administrative 27,007 23,542 25,163 Total stock-based compensation 86,628 76,580 71,249 Estimated benefit from income taxes (14,090) (12,884) (12,595) Total stock-based compensation, net of tax $ 72,538 $ 63,696 $ 58,654 |
Schedule of Tax Benefit from Exercise of Options | Expense - By Income Statement Classification Fiscal Year Ended September 25, September 27, September 28, Cost of products and services $ 2,072 $ 1,710 $ 1,574 Research and development 25,634 23,191 19,515 Sales and marketing 31,915 28,137 24,997 General and administrative 27,007 23,542 25,163 Total stock-based compensation 86,628 76,580 71,249 Estimated benefit from income taxes (14,090) (12,884) (12,595) Total stock-based compensation, net of tax $ 72,538 $ 63,696 $ 58,654 The tax benefit that we recognize from shares issued under our ESPP is excluded from the tables above. This benefit was as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Tax benefit - shares issued under ESPP $ 409 $ 353 $ 577 |
Schedule of Treasury Stock Authorizations | The following table summarizes the initial amount of authorized repurchases as well as additional repurchases approved by our Board of Directors as of September 25, 2020 (in thousands): Authorization Period Authorization Amount Fiscal 2010: November 2009 $ 250,000 Fiscal 2010: July 2010 300,000 Fiscal 2011: July 2011 250,000 Fiscal 2012: February 2012 100,000 Fiscal 2015: October 2014 200,000 Fiscal 2017: January 2017 200,000 Fiscal 2018: July 2018 350,000 Fiscal 2019: July 2019 350,000 Total $ 2,000,000 |
Schedule of Stock Repurchase Activity | The following table provides information regarding share repurchase activity under the program in fiscal 2020: Quarterly Repurchase Activity Shares Cost (1) Average Price Paid Per Share (2) (in thousands) Q1 - Quarter ended December 27, 2019 432,042 $ 30,003 $ 69.44 Q2 - Quarter ended March 27, 2020 1,015,481 71,669 70.57 Q3 - Quarter ended June 26, 2020 474,340 27,081 57.09 Q4 - Quarter ended September 25, 2020 642,696 44,989 70.00 Total 2,564,559 $ 173,742 (1) Cost of share repurchases includes the price paid per share and applicable commissions. (2) Average price paid per share excludes commission costs. |
Dividends Declared | The following table summarizes dividends declared under the program during fiscal 2020: Fiscal Period Announcement Date Record Date Payment Date Cash Dividend Per Common Share Dividend Payment Fiscal 2020 Q1 - Quarter ended December 27, 2019 January 29, 2020 February 10, 2020 February 20, 2020 $ 0.22 $22.2 million Q2 - Quarter ended March 27, 2020 May 4, 2020 May 18, 2020 May 27, 2020 $ 0.22 $22.1 million Q3 - Quarter ended June 26, 2020 August 3, 2020 August 17, 2020 August 26, 2020 $ 0.22 $22.1 million Q4 - Quarter ended September 25, 2020 November 12, 2020 November 24, 2020 December 4, 2020 $ 0.22 $22.1 million (1) (1) The dividend payment amount is estimated based on the number of shares of our Class A and Class B common stock that we estimate will be outstanding as of the Record Date. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in the accumulated balances during the period, and includes information regarding the manner in which the reclassifications out of AOCI into earnings affect our consolidated statements of operations (in thousands): Fiscal Year Ended Fiscal Year Ended September 25, 2020 September 27, 2019 Investment Securities Cash Flow Hedges Currency Translation Adjustments Total Investment Securities Cash Flow Hedges Currency Translation Adjustments Total Beginning Balance $ 2,198 $ — $ (22,823) $ (20,625) $ (2,948) $ — $ (12,884) $ (15,832) Other comprehensive income before reclassifications: Unrealized gains/(losses) (5,393) 5,270 — (123) 5,131 (176) — 4,955 Foreign currency translation gains/(losses) (1) — — 7,420 7,420 — — (9,500) (9,500) Income tax effect - benefit/(expense) (87) (581) 22 (646) 37 — (439) (402) Net of tax (5,480) 4,689 7,442 6,651 5,168 (176) (9,939) (4,947) Amounts reclassified from AOCI into earnings: Realized gains/(losses) (1) 4,939 (894) — 4,045 (43) 176 — 133 Income tax effect - benefit/(expense) (2) (839) 174 — (665) 21 — — 21 Net of tax 4,100 (720) — 3,380 (22) 176 — 154 Net current-period other comprehensive income/(loss) (1,380) 3,969 7,442 10,031 5,146 — (9,939) (4,793) Ending Balance $ 818 $ 3,969 $ (15,381) $ (10,594) $ 2,198 $ — $ (22,823) $ (20,625) (1) Realized gains or losses, if any, from the sale of our AFS investment securities or from foreign currency translation adjustments are included within other income/expense, net in our consolidated statements of operations. Realized gains or losses on foreign currency contracts designated as cash flow hedges are included in operating expenses on the consolidated statements of operations. (2) The income tax benefit or expense is included within provision for income taxes in our consolidated statements of operations. |
Per Share Data (Tables)
Per Share Data (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted EPS attributable to Dolby Laboratories, Inc. (in thousands, except per share amounts): Fiscal Year Ended September 25, September 27, September 28, Numerator: Net income attributable to Dolby Laboratories, Inc. $ 231,363 $ 255,151 $ 41,746 Denominator: Weighted-average shares outstanding—basic 100,564 101,629 103,377 Potential common shares from options to purchase common stock 1,400 1,922 2,370 Potential common shares from restricted stock units 941 1,021 1,231 Potential common shares from ESPP 39 — — Weighted-average shares outstanding—diluted 102,944 104,572 106,978 Net income per share attributable to Dolby Laboratories, Inc.: Basic $ 2.30 $ 2.51 $ 0.40 Diluted $ 2.25 $ 2.44 $ 0.39 Antidilutive awards excluded from calculation: Stock options 3,209 2,340 1,043 Restricted stock units 2 1 6 ESPP 1 — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Income Tax Disclosure [Abstract] | |
Components Of Income Before Provision For Income Taxes | The following two tables present the components of our income before provision for income taxes by geographic region and the portion of our provision for income taxes classified as current and deferred (in thousands): Fiscal Year Ended September 25, September 27, September 28, United States $ 32,426 $ 60,500 $ 27,819 Foreign 207,289 221,807 168,555 Total $ 239,715 $ 282,307 $ 196,374 |
Schedule Of Provision For Income Taxes | Fiscal Year Ended September 25, September 27, September 28, Current: Federal $ (48,517) $ 14,144 $ 40,624 State 735 394 333 Foreign 61,153 64,335 59,383 Total current 13,371 78,873 100,340 Deferred: Federal (4,674) (55,793) 43,377 State (111) 1,007 17,484 Foreign (490) 2,715 (7,132) Total deferred (5,275) (52,071) 53,729 Provision for income taxes $ 8,096 $ 26,802 $ 154,069 |
Summary Of Tax Effects Of The Temporary Differences Between Carrying Amounts And Amounts Used For Tax | A summary of the tax effects of the temporary differences were as follows (in thousands): Fiscal Year Ended September 25, September 27, Deferred income tax assets: Investments $ 1,899 $ 2,099 Inventories 6,863 4,041 Net operating loss 3,450 2,050 Accrued expenses 13,839 13,917 Stock-based compensation 17,397 17,189 Revenue recognition 4,374 4,410 Depreciation and amortization 45,572 19,988 Lease liability 17,655 — Research and development credits 31,795 28,777 Foreign tax credits 12,161 10,777 Deemed repatriated earnings tax benefit 9,788 33,357 Other 4,765 4,705 Total gross deferred income tax assets 169,558 141,310 Less: valuation allowance (30,416) (24,884) Total deferred income tax assets 139,142 116,426 Deferred income tax liabilities: Right of use asset (17,360) — Intangibles (2,901) (2,351) Deferred income tax assets, net $ 118,881 $ 114,075 |
Reconciliation Of Federal Statutory Tax Rate To Our Effective Tax Rate | A reconciliation of the federal statutory tax rate to our effective tax rate on income from continuing operations was as follows: Fiscal Year Ended September 25, September 27, September 28, Federal statutory rate 21.0 % 21.0 % 24.6 % State income taxes, net of federal effect 0.2 0.2 0.7 Stock-based compensation (2.7) (1.9) (5.2) Research and development tax credits (3.0) (4.7) (4.0) Foreign-derived intangible income deduction (2.2) (0.7) — U.S. tax on foreign entities 3.1 0.6 — Foreign rate differential (1.8) (4.4) (9.4) Increase (decrease) unrecognized tax benefit (12.9) 3.4 3.7 Tax Act — (7.6) 53.3 Change in Valuation Allowance — 1.5 8.3 Other 1.7 2.1 6.5 Effective tax rate 3.4 % 9.5 % 78.5 % |
Aggregate Changes In Balance Of Gross Unrecognized Tax Benefits, Excluding Interest And Penalties | Aggregate changes in the balance of gross unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Beginning Balance $ 108,539 $ 102,009 $ 98,665 Gross increases - tax positions taken during prior years 5,504 115 — Gross decreases - tax positions taken during prior years — — (2,209) Gross increases - tax positions taken during current year 7,509 6,822 9,580 Gross decreases - settlements with tax authorities during current year (37) — (130) Lapse of statute of limitations (60,824) (407) (3,897) Ending Balance $ 60,691 $ 108,539 $ 102,009 |
Schedule of Accrued Interest and Penalties on Unrecognized Tax Benefits | Our accrued interest and penalties on unrecognized tax benefits as of September 25, 2020 and September 27, 2019 were as follows (in thousands): Fiscal Year Ended September 25, September 27, Accrued interest $ 4,017 $ 10,315 Accrued penalties 45 44 Total $ 4,062 $ 10,359 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Costs | The table presented below summarizes changes in restructuring accruals under these plans (in thousands): Severance Leased facility exit costs Fixed assets write-off Other associated costs Total Balance at September 27, 2019 $ 128 $ 15,723 $ — $ — $ 15,851 Restructuring charges — 1,821 — — 1,821 Cash payments (75) (22,119) — — (22,194) Non-cash and other adjustments (53) 4,575 — — 4,522 Balance at September 25, 2020 $ — $ — $ — $ — $ — |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Contractual Obligations And Commitments | The following table presents a summary of our contractual obligations and commitments as of September 25, 2020 (in thousands): Payments Due By Fiscal Period Fiscal Fiscal Fiscal Fiscal Fiscal Thereafter Total Naming rights $ 7,915 $ 8,015 $ 8,116 $ 8,219 $ 8,322 $ 61,277 $ 101,864 Purchase obligations 17,305 2,991 139 — — — 20,435 Donation commitments 4,803 155 155 155 155 1,002 6,425 Total $ 30,023 $ 11,161 $ 8,410 $ 8,374 $ 8,477 $ 62,279 $ 128,724 |
Operating Segments and Geogra_2
Operating Segments and Geographic Data (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Segments, Geographical Areas [Abstract] | |
Revenue By Geographic Region | Revenue Category Basis For Determining Geographic Location Licensing Region in which our licensees’ headquarters are located Products Destination to which our products are shipped Services Location in which the relevant services are performed The following tables present selected information regarding total revenue by geographic location (amounts presented in thousands). Revenue Composition - United States & International Fiscal Year Ended Location September 25, September 27, September 28, United States $ 460,972 $ 449,203 $ 353,235 International 700,820 792,417 701,365 Total revenue $ 1,161,792 $ 1,241,620 $ 1,054,600 |
Schedule Of Concentration Of Revenue From Individual Geographic Regions | Revenue Concentration - Significant Individual Geographic Regions Fiscal Year Ended Location September 25, September 27, September 28, United States 40 % 36 % 33 % South Korea 12 % 12 % 17 % China 20 % 20 % 15 % Japan 9 % 11 % 13 % Europe 10 % 12 % 12 % Taiwan 2 % 4 % 3 % Other 7 % 5 % 7 % Total 100 % 100 % 100 % |
Schedule Of Long-Lived Tangible Assets, Net Of Accumulated Depreciation, By Geographic Region | Long-lived tangible assets, net of accumulated depreciation, by geographic region were as follows (in thousands): Location September 25, September 27, United States $ 453,889 $ 460,370 International 88,074 77,062 Total long-lived tangible assets, net of accumulated depreciation $ 541,963 $ 537,432 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Related Party Transactions [Abstract] | |
Schedule Of Ownership Interest In The Consolidated Affiliated Entities | Our interests in these consolidated affiliated entities and the location of the property leased to Dolby Laboratories as of September 25, 2020 were as follows: Entity Name Minority Ownership Interest Location Of Properties Dolby Properties Brisbane, LLC 49.0 % Brisbane, California Dolby Properties Burbank, LLC 49.0 % Burbank, California Dolby Properties, LP 10.0 % Wootton Bassett, England We lease from our principal stockholder a commercial office building located at 100 Potrero Avenue in San Francisco, California under a term that expires on October 31, 2024. In fiscal 2019, we ceased occupancy of the facility, and do not intend to re-occupy the locations. As a result of our ceased occupancy, we incurred $33.5 million in restructuring charges recorded as operating expenses in our consolidated statement of operations. Related party rent expense included in operating expenses in our consolidated statements of operations were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Related party rent expense and restructuring charges included in operating expenses $ 126 $ 16,360 $ 3,483 Distributions. Distributions made by the jointly-owned real estate entities to our principal stockholder were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Distributions to principal stockholder $ (283) $ (1,015) $ (1,022) |
Retirement Plans Retirement Pla
Retirement Plans Retirement Plans (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Schedule of Costs of Retirement Plans | Retirement plan expenses, which are included in cost of products, cost of services, R&D, S&M, and G&A expense in our consolidated statements of operations, were as follows (in thousands): Fiscal Year Ended September 25, September 27, September 28, Retirement plan expenses $ 25,257 $ 23,375 $ 23,439 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Sep. 25, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule Of Selected Quarterly Financial Data | The following table presents selected unaudited quarterly financial information from fiscal 2020 and 2019 (in thousands, except per share amounts): Fiscal Year 2020 Fiscal Year 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue: Licensing $ 257,683 $ 328,865 $ 235,125 $ 256,904 $ 260,279 $ 310,308 $ 271,897 $ 264,796 Products and services 34,194 22,950 11,784 14,287 42,097 27,950 30,262 34,031 Total revenue 291,877 351,815 246,909 271,191 302,376 338,258 302,159 298,827 Cost of revenue 37,315 36,830 29,888 42,465 38,629 36,575 39,690 45,960 Gross margin 254,562 314,985 217,021 228,726 263,747 301,683 262,469 252,867 Income/(loss) before taxes and controlling interest 54,454 110,779 39,990 34,492 74,254 110,002 41,800 56,251 Net income/(loss) attributable to Dolby Laboratories $ 48,753 $ 88,496 $ 67,285 $ 26,829 $ 98,219 $ 73,440 $ 39,574 $ 43,918 Earnings per share: Basic $ 0.49 $ 0.88 $ 0.67 $ 0.27 $ 0.96 $ 0.72 $ 0.39 $ 0.44 Diluted $ 0.47 $ 0.86 $ 0.66 $ 0.26 $ 0.93 $ 0.70 $ 0.38 $ 0.43 Weighted-average shares outstanding: Basic 100,336 100,854 100,593 100,473 102,677 102,141 101,218 100,481 Diluted 103,078 102,773 102,075 102,722 106,130 104,587 103,717 102,945 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 28, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Maximum credit exposure (percent) | 5.00% | |||
Advertising expense | $ 61,125 | $ 49,118 | $ 49,519 | |
Transaction and re-measurement gains/losses | (1,361) | (260) | $ (823) | |
Operating lease right-of-use assets | 76,515 | 0 | $ 62,100 | |
Operating lease liabilities | $ 81,137 | $ 64,600 | ||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Intangible assets with definite lives, useful life, minimum years | 3 years | |||
Minimum [Member] | Internal Use Software [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Intangible assets with definite lives, useful life, minimum years | 3 years | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Intangible assets with definite lives, useful life, minimum years | 18 years | |||
Maximum [Member] | Internal Use Software [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Intangible assets with definite lives, useful life, minimum years | 5 years | |||
Foreign Exchange Forward [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Notional amount of derivative | $ 26,800 | $ 22,000 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Schedule Of Property, Plant, And Equipment, Estimated Useful Life) (Details) | 12 Months Ended |
Sep. 25, 2020 | |
Minimum [Member] | Systems And Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 3 years |
Minimum [Member] | Machinery And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 3 years |
Minimum [Member] | Furniture And Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 5 years |
Minimum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 20 years |
Maximum [Member] | Systems And Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 5 years |
Maximum [Member] | Machinery And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 8 years |
Maximum [Member] | Furniture And Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 8 years |
Maximum [Member] | Equipment provided under operating leases [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 15 years |
Maximum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment, useful life, years | 40 years |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 25, 2020 | |
Revenue from Contract with Customer [Abstract] | |||||
Expected timing of satisfaction period, or less | 1 year | ||||
Revenue adjustment | $ 26 | $ 11 | $ 7 | $ 9 | |
Revenue recognized | $ 17.7 |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligation) (Details) $ in Millions | 12 Months Ended |
Sep. 25, 2020USD ($)country | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ | $ 37.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Countries technologies are licensed in | country | 60 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 1 year |
Remaining performance obligation, percent | 38.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 1 year |
Remaining performance obligation, percent | 22.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction period | 1 year |
Remaining performance obligation, percent | 40.00% |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenue from contract with customer | $ 1,161,792 | $ 1,241,620 | |||||||||
Revenue from contract with customer, percent | 100.00% | 100.00% | |||||||||
United States | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from contract with customer | $ 460,972 | $ 449,203 | |||||||||
Revenue from contract with customer, percent | 40.00% | 36.00% | |||||||||
International | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from contract with customer | $ 700,820 | $ 792,417 | |||||||||
Revenue from contract with customer, percent | 60.00% | 64.00% | |||||||||
Licensing | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from contract with customer | $ 256,904 | $ 235,125 | $ 328,865 | $ 257,683 | $ 264,796 | $ 271,897 | $ 310,308 | $ 260,279 | $ 1,078,577 | $ 1,107,280 | $ 940,777 |
Revenue from contract with customer, percent | 93.00% | 89.00% | |||||||||
Revenue from contract with customer, licensing percent | 100.00% | 100.00% | |||||||||
Products and services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from contract with customer | $ 83,215 | $ 134,340 | $ 113,823 | ||||||||
Revenue from contract with customer, percent | 7.00% | 11.00% | |||||||||
Broadcast | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from contract with customer | $ 439,415 | $ 474,147 | |||||||||
Revenue from contract with customer, licensing percent | 41.00% | 43.00% | |||||||||
Mobile | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from contract with customer | $ 226,972 | $ 193,052 | |||||||||
Revenue from contract with customer, licensing percent | 21.00% | 17.00% | |||||||||
CE | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from contract with customer | $ 152,608 | $ 154,399 | |||||||||
Revenue from contract with customer, licensing percent | 14.00% | 14.00% | |||||||||
PC | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from contract with customer | $ 132,302 | $ 113,597 | |||||||||
Revenue from contract with customer, licensing percent | 12.00% | 10.00% | |||||||||
Other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from contract with customer | $ 127,280 | $ 172,085 | |||||||||
Revenue from contract with customer, licensing percent | 12.00% | 16.00% |
Revenue Recognition (Summary of
Revenue Recognition (Summary of Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 25, 2020 | Sep. 27, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 180,340 | $ 189,115 |
Contract assets | 161,357 | 195,651 |
Other non-current assets | 91,245 | 93,395 |
Contract liabilities | 15,436 | 19,991 |
Non-current contract liabilities | 24,342 | 24,404 |
Other non-current liabilities | 122,154 | $ 177,462 |
Change ($) | ||
Accounts receivable, net | (8,775) | |
Contract assets | (34,294) | |
Contract liabilities - current | (4,555) | |
Contract liabilities - non-current | $ (62) | |
Change (%) | ||
Accounts receivable, net | (5.00%) | |
Contract assets | (18.00%) | |
Contract liabilities - current | (23.00%) | |
Contract liabilities - non-current | 0.00% |
Composition Of Certain Financ_3
Composition Of Certain Financial Statement Captions (Narrative) (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Sep. 27, 2019 |
Composition Of Certain Financial Statement Captions [Line Items] | ||
Unbilled accounts receivable | $ 62,100 | $ 82,300 |
Raw materials | 3,770 | 8,031 |
Other Noncurrent Assets [Member] | ||
Composition Of Certain Financial Statement Captions [Line Items] | ||
Raw materials | 2,600 | $ 3,000 |
Land and Building [Member] | Other Current Assets [Member] | ||
Composition Of Certain Financial Statement Captions [Line Items] | ||
Land and buildings held for sale | $ 2,200 |
Composition Of Certain Financ_4
Composition Of Certain Financial Statement Captions (Schedule Of Accounts Receivable) (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Sep. 27, 2019 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Trade accounts receivable | $ 147,618 | $ 151,996 |
Accounts receivable from patent administration program partners | 48,630 | 46,894 |
Accounts receivable, gross | 196,248 | 198,890 |
Less: allowance for doubtful accounts | (15,908) | (9,775) |
Total | $ 180,340 | $ 189,115 |
Composition Of Certain Financ_5
Composition Of Certain Financial Statement Captions (Schedule Of Allowance For Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Fiscal Year | $ 9,775 | $ 5,258 | $ 2,967 |
Charged to Operations | 7,689 | 4,523 | 2,413 |
Deductions | (1,556) | (6) | (122) |
Balance at End of Fiscal Year | $ 15,908 | $ 9,775 | $ 5,258 |
Composition Of Certain Financ_6
Composition Of Certain Financial Statement Captions (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Sep. 27, 2019 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Raw materials | $ 3,770 | $ 8,031 |
Work in process | 9,214 | 4,872 |
Finished goods | 12,566 | 19,428 |
Inventories | $ 25,550 | $ 32,331 |
Composition Of Certain Financ_7
Composition Of Certain Financial Statement Captions (Schedule Of Prepaid Expenses And Other Current Assets) (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Sep. 27, 2019 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Prepaid assets | $ 17,884 | $ 17,997 |
Other current assets | 35,138 | 21,707 |
Prepaid expenses and other current assets | $ 53,022 | $ 39,704 |
Composition Of Certain Financ_8
Composition Of Certain Financial Statement Captions (Schedule Of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Sep. 27, 2019 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Accrued royalties | $ 901 | $ 2,957 |
Amounts payable to joint licensing program partners | 60,427 | 58,899 |
Accrued compensation and benefits | 89,684 | 78,716 |
Accrued professional fees | 10,344 | 19,216 |
Unpaid PP&E additions | 15,102 | 15,332 |
Other accrued liabilities | 33,463 | 68,725 |
Accrued liabilities | 219,974 | 268,144 |
Contract with Customer, Refund Liability | $ 10,053 | $ 24,299 |
Composition Of Certain Financ_9
Composition Of Certain Financial Statement Captions (Schedule Of Other Non-Current Liabilities) (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Sep. 27, 2019 |
Composition Of Certain Financial Statement Captions [Abstract] | ||
Supplemental retirement plan obligations | $ 4,181 | $ 3,466 |
Non-current tax liabilities | 85,943 | 136,323 |
Other liabilities | 32,030 | 37,673 |
Other non-current liabilities | $ 122,154 | $ 177,462 |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Schedule Of Financial Assets Carried At Fair Value) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 25, 2020 | Sep. 27, 2019 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash Equivalents, at Carrying Value | $ 1,071,876 | ||||
Cash | $ 797,210 | ||||
Short-term investments, cost | 309,067 | 413,927 | |||
Short-term investments, unrealized losses | 0 | 0 | |||
Short term investments, total | 310,058 | 416,210 | |||
Long-term investments, unrealized gains | 0 | ||||
Total cash, cash equivalents, and investments, cost | 1,169,983 | 1,093,659 | |||
Total cash, cash equivalents, and investments, unrealized gains | 1,006 | 2,341 | |||
Total cash, cash equivalents, and investments, unrealized losses | (16) | (57) | |||
Total cash, cash equivalents, and investments, total | 1,170,973 | 1,095,943 | |||
Assets | 1,071,876 | 797,210 | |||
Government bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash | 653 | ||||
Short-term investments, cost | 125 | ||||
Short term investments, total | 125 | ||||
Long-term investments, unrealized gains | 0 | ||||
Long-term investments, unrealized losses | 0 | ||||
Corporate bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash | 1,000 | ||||
Municipal debt securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Total cash, cash equivalents, and investments, cost | 2,505 | 9,552 | |||
Other long-term investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments | 4,200 | 1,700 | |||
Short-term investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments, cost | 118,978 | ||||
Short-term investments, unrealized gains | 219 | ||||
Short-term investments, unrealized losses | (51) | ||||
Short term investments, total | 119,146 | ||||
Long-term investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments, cost | 177,471 | ||||
Long-term investments, unrealized gains | 2,122 | ||||
Long-term investments, unrealized losses | (6) | ||||
U.S. agency securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments, unrealized gains | 12 | ||||
Short-term investments, unrealized losses | 0 | ||||
Short term investments, total | 1,011 | ||||
Cash | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash Equivalents, at Carrying Value | 856,740 | ||||
Cash | 856,740 | 680,287 | |||
Money market funds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash Equivalents, at Carrying Value | 214,111 | ||||
Cash | 214,111 | 115,270 | |||
Commercial paper | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash Equivalents, at Carrying Value | 900 | ||||
Cash | 900 | ||||
Level 1 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash | 1,070,976 | 796,210 | |||
Assets | 1,073,979 | 821,664 | |||
Currency derivatives as hedge instruments, liabilities | 0 | 0 | |||
Level 1 | Other Current Assets [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Currency derivatives as hedge instruments, assets | 0 | ||||
Level 1 | Other Noncurrent Assets [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Currency derivatives as hedge instruments, assets | 0 | ||||
Level 1 | Government bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash | 125 | 653 | |||
Level 1 | Investments held in supplemental retirement plan: | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Assets | 4,279 | 3,564 | |||
Liabilities | 4,279 | 3,564 | |||
Level 1 | Cash | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash | 856,740 | 680,287 | |||
Level 1 | Money market funds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash | 214,111 | 115,270 | |||
Level 2 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash | 900 | 1,000 | |||
Assets | 92,818 | 272,548 | |||
Currency derivatives as hedge instruments, liabilities | (79) | (242) | |||
Level 2 | Other Current Assets [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Currency derivatives as hedge instruments, assets | 4,267 | ||||
Level 2 | Other Noncurrent Assets [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Currency derivatives as hedge instruments, assets | 369 | ||||
Level 2 | Government bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash | 0 | ||||
Level 2 | Commercial paper | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash | 900 | ||||
Level 2 | Corporate bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash | 1,000 | ||||
Level 2 | U.S. agency securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | 1,011 | ||||
Level 3 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Assets | 0 | 0 | |||
Currency derivatives as hedge instruments, liabilities | 0 | 0 | |||
Level 3 | Other Current Assets [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Currency derivatives as hedge instruments, assets | 0 | ||||
Level 3 | Other Noncurrent Assets [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Currency derivatives as hedge instruments, assets | 0 | ||||
Short-term investments | Government bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments, cost | 5,118 | 8,381 | |||
Short-term investments, unrealized gains | 47 | 11 | |||
Short-term investments, unrealized losses | 0 | (1) | |||
Short term investments, total | 5,165 | 8,391 | |||
Short-term investments | U.S. agency securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments, cost | 10,973 | ||||
Short-term investments | Commercial paper | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments, cost | 4,727 | 6,347 | |||
Short-term investments, unrealized gains | 4 | 9 | |||
Short-term investments, unrealized losses | 0 | 0 | |||
Short term investments, total | 4,731 | 6,356 | |||
Short-term investments | Corporate bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments, cost | 18,754 | 76,802 | |||
Short-term investments, unrealized gains | 87 | 172 | |||
Short-term investments, unrealized losses | (3) | (34) | |||
Short term investments, total | 18,838 | 76,940 | |||
Short-term investments | Municipal debt securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments, cost | 14,828 | 15,210 | |||
Short-term investments, unrealized gains | 97 | 18 | |||
Short-term investments, unrealized losses | 0 | (7) | |||
Short term investments, total | 14,925 | 15,221 | |||
Short-term investments | Short-term investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments, cost | 46,703 | ||||
Short-term investments, unrealized gains | 248 | ||||
Short-term investments, unrealized losses | (3) | ||||
Short term investments, total | 46,948 | ||||
Short-term investments | Certificates of Deposit | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments, cost | 2,277 | 1,265 | |||
Short-term investments, unrealized gains | 1 | 1 | |||
Short-term investments, unrealized losses | 0 | 0 | |||
Short term investments, total | 2,278 | 1,266 | |||
Short-term investments | U.S. agency securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments, cost | 999 | ||||
Short-term investments, unrealized gains | 8 | ||||
Short-term investments, unrealized losses | (9) | ||||
Short term investments, total | 10,972 | ||||
Short-term investments | Level 1 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | 1,370 | 5,784 | |||
Short-term investments | Level 1 | Government bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | 1,370 | 5,784 | |||
Short-term investments | Level 2 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | 45,578 | 113,362 | |||
Short-term investments | Level 2 | Government bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | 3,795 | 2,607 | |||
Short-term investments | Level 2 | Commercial paper | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | 4,731 | 6,356 | |||
Short-term investments | Level 2 | Corporate bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | 18,838 | 76,940 | |||
Short-term investments | Level 2 | Municipal debt securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | 14,925 | 15,221 | |||
Short-term investments | Level 2 | Certificates of Deposit | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | 2,278 | 1,266 | |||
Short-term investments | Level 2 | U.S. agency securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | 10,972 | ||||
Long-term investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments, total | 179,587 | ||||
Long-term investments | Government bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments, cost | 5,137 | 23,563 | |||
Long-term investments, unrealized gains | 80 | 187 | |||
Long-term investments, unrealized losses | 0 | 0 | |||
Long-term investments, total | 5,217 | 23,750 | |||
Long-term investments | Asset backed securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments, cost | 400 | ||||
Long-term investments, unrealized gains | 2 | ||||
Long-term investments, unrealized losses | 0 | ||||
Long-term investments, total | 402 | ||||
Long-term investments | U.S. agency securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments, cost | 2,214 | 7,102 | |||
Long-term investments, unrealized gains | 56 | 146 | |||
Long-term investments, unrealized losses | 0 | 0 | |||
Long-term investments, total | 2,270 | 7,248 | |||
Long-term investments | Corporate bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments, cost | 24,657 | 134,360 | |||
Long-term investments, unrealized gains | 419 | 1,700 | |||
Long-term investments, unrealized losses | (7) | 0 | |||
Long-term investments, total | 25,069 | 136,060 | |||
Long-term investments | Municipal debt securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments, cost | 15,220 | 10,315 | |||
Long-term investments, unrealized gains | 203 | 87 | |||
Long-term investments, unrealized losses | (6) | (6) | |||
Long-term investments, total | 15,417 | 10,396 | |||
Long-term investments | Other long-term investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments, cost | 4,176 | [1] | 1,731 | [2] | |
Long-term investments, unrealized gains | 0 | [1] | 0 | [2] | |
Long-term investments, unrealized losses | 0 | [1] | 0 | [2] | |
Long-term investments, total | 4,176 | [1] | 1,731 | [2] | |
Long-term investments | Long-term investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments, cost | 51,404 | ||||
Long-term investments, unrealized gains | 758 | ||||
Long-term investments, unrealized losses | (13) | ||||
Long-term investments, total | 52,149 | ||||
Long-term investments | Level 1 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments | 1,633 | 19,670 | |||
Long-term investments | Level 1 | Government bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments | 1,633 | 19,670 | |||
Long-term investments | Level 1 | Other long-term investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments | [2] | 0 | |||
Long-term investments | Level 2 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments | 46,340 | 158,186 | |||
Long-term investments | Level 2 | Government bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments | 3,584 | 4,080 | |||
Long-term investments | Level 2 | Asset backed securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments | 402 | ||||
Long-term investments | Level 2 | U.S. agency securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments | 2,270 | 7,248 | |||
Long-term investments | Level 2 | Corporate bonds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments | 25,069 | 136,060 | |||
Long-term investments | Level 2 | Municipal debt securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term investments | 15,417 | 10,396 | |||
Liabilities: Included in other accrued expenses | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Currency derivatives as hedge instruments, unrealized gains | 0 | 0 | |||
Currency derivatives as hedge instruments, unrealized loss | (79) | (242) | |||
Currency derivatives as hedge instruments, liabilities, cost | 0 | 0 | |||
Currency derivatives as hedge instruments, liabilities | (79) | $ (242) | |||
Assets: Included in other current assets | Other Current Assets [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Currency derivatives as hedge instruments, assets, cost | 0 | ||||
Currency derivatives as hedge instruments, unrealized gains | 4,267 | ||||
Currency derivatives as hedge instruments, unrealized loss | 0 | ||||
Currency derivatives as hedge instruments, assets | 4,267 | ||||
Assets: Included in other current assets | Other Noncurrent Assets [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Currency derivatives as hedge instruments, assets, cost | 0 | ||||
Currency derivatives as hedge instruments, unrealized gains | 369 | ||||
Currency derivatives as hedge instruments, unrealized loss | 0 | ||||
Currency derivatives as hedge instruments, assets | $ 369 | ||||
[1] | Other long-term investments as of September 25, 2020 is comprised of one equity method investment which is not carried at fair value of $4.2 million. | ||||
[2] | Other long-term investments as of September 27, 2019 is comprised of one equity method investment which is not carried at fair value of $1.7 million. |
Investments and Fair Value Me_3
Investments and Fair Value Measurements (Unrealized Loss Position) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 25, 2020 | Sep. 27, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | $ 797,210 | |
Long-term investments, unrealized gains | $ 0 | |
Short-term investments, cost | 309,067 | 413,927 |
Debt Securities, Available-for-sale, Unrealized Loss | 0 | 0 |
Short term investments, total | 310,058 | 416,210 |
Fair Value | 9,581 | 18,925 |
Gross Unrealized Losses | (16) | (16) |
Greater than 12 months, Fair Value | 0 | 32,765 |
Greater than 12 months, Gross Unrealized Losses | 0 | (41) |
Investment Owned, at Cost | 1,169,983 | 1,093,659 |
Investment Owned, Unrecognized Unrealized Appreciation | (1,006) | (2,341) |
Long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 2,122 | |
Available-for-sale Securities, Gross Unrealized Loss | 6 | |
Certificates of Deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 300 |
Gross Unrealized Losses | 0 | 0 |
Greater than 12 months, Fair Value | 0 | 0 |
Greater than 12 months, Gross Unrealized Losses | 0 | 0 |
U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Greater than 12 months, Fair Value | 0 | 4,787 |
Greater than 12 months, Gross Unrealized Losses | 0 | (9) |
Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 1,000 | |
Fair Value | 7,076 | 7,647 |
Gross Unrealized Losses | (10) | (3) |
Greater than 12 months, Fair Value | 0 | 27,078 |
Greater than 12 months, Gross Unrealized Losses | 0 | (32) |
Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross Unrealized Losses | (6) | (13) |
Greater than 12 months, Fair Value | 0 | 900 |
Greater than 12 months, Gross Unrealized Losses | 0 | 0 |
Investment Owned, at Cost | 2,505 | 9,552 |
Government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 653 | |
Long-term investments, unrealized gains | 0 | |
Short-term investments, cost | 125 | |
Available-for-sale Securities, Gross Unrealized Loss | 0 | |
Short term investments, total | 125 | |
Fair Value | 0 | 1,426 |
Gross Unrealized Losses | 0 | 0 |
Greater than 12 months, Fair Value | 0 | 0 |
Greater than 12 months, Gross Unrealized Losses | 0 | 0 |
Short-term investments | Certificates of Deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 2,277 | 1,265 |
Debt Securities, Available-for-sale, Unrealized Loss | 0 | 0 |
Short term investments, total | 2,278 | 1,266 |
Short-term investments | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 10,973 | |
Short-term investments | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 18,754 | 76,802 |
Debt Securities, Available-for-sale, Unrealized Loss | 3 | 34 |
Short term investments, total | 18,838 | 76,940 |
Short-term investments | Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 14,828 | 15,210 |
Debt Securities, Available-for-sale, Unrealized Loss | 0 | 7 |
Short term investments, total | 14,925 | 15,221 |
Short-term investments | Government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 5,118 | 8,381 |
Debt Securities, Available-for-sale, Unrealized Loss | 0 | 1 |
Short term investments, total | 5,165 | 8,391 |
Short-term investments | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments, cost | 4,727 | 6,347 |
Debt Securities, Available-for-sale, Unrealized Loss | 0 | 0 |
Short term investments, total | 4,731 | 6,356 |
Long-term investments | Long-term investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 758 | |
Available-for-sale Securities, Gross Unrealized Loss | 13 | |
Long-term investments | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 56 | 146 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | 0 |
Long-term investments | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 419 | 1,700 |
Available-for-sale Securities, Gross Unrealized Loss | 7 | 0 |
Long-term investments | Municipal debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 203 | 87 |
Available-for-sale Securities, Gross Unrealized Loss | 6 | 6 |
Long-term investments | Government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments, unrealized gains | 80 | 187 |
Available-for-sale Securities, Gross Unrealized Loss | $ 0 | $ 0 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements Investments and Fair Value Measurements (Investment Maturities) (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Sep. 27, 2019 |
Amortized Cost | ||
Due within 1 year | $ 261,839 | $ 238,186 |
Due in 1 to 2 years | 29,328 | 93,948 |
Due in 2 to 3 years | 17,900 | 81,793 |
Total | 309,067 | 413,927 |
Fair Value | ||
Due within 1 year | 262,085 | 238,354 |
Due in 1 to 2 years | 29,814 | 94,899 |
Due in 2 to 3 years | 18,159 | 82,957 |
Total | $ 310,058 | $ 416,210 |
Property, Plant & Equipment (De
Property, Plant & Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 1,018,029 | $ 954,731 | |
Less: accumulated depreciation | (476,066) | (417,299) | |
Property, Plant And Equipment, Net | 541,963 | 537,432 | |
Depreciation | 61,400 | 55,500 | $ 54,800 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 41,955 | 41,918 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 283,617 | 282,924 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 83,764 | 66,730 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 126,942 | 128,525 | |
Computer Systems and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 230,800 | 219,455 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 31,845 | 34,191 | |
Cinema equipment provided under operating leases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 199,561 | 161,372 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 19,545 | $ 19,616 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Lessor, Lease, Description [Line Items] | |||
Lesse lease term | 12 years | ||
Lessee lease renewal term | 9 years | ||
Lessee lease termination period | 1 year | ||
Operating leases, rent expense, net | $ 20,600 | $ 17,200 | |
Variable operating lease income | $ 10,400 | ||
Fixed operating lease income | 3,700 | ||
Unguaranteed residual value of sales-type leases | $ 700 | ||
Minimum [Member] | |||
Lessor, Lease, Description [Line Items] | |||
Lessor lease term | 4 years | ||
Lessor lease renewal term | 1 year | ||
Maximum [Member] | |||
Lessor, Lease, Description [Line Items] | |||
Lessor lease term | 10 years | ||
Lessor lease renewal term | 5 years |
Leases (Lease Cost Components)
Leases (Lease Cost Components) (Details) $ in Thousands | 12 Months Ended |
Sep. 25, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 23,570 |
Variable lease cost | 1,175 |
Total lease cost | $ 24,745 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Schedule) (Details) $ in Thousands | 12 Months Ended |
Sep. 25, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 22,043 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating lease liabilities | $ 34,198 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information Schedule) (Details) | Sep. 25, 2020 |
Operating Leases | |
Weighted-average remaining lease term | 6 years 6 months |
Weighted-average discount rate | 3.10% |
Leases (Maturities of Lessee Le
Leases (Maturities of Lessee Lease Liabilities Schedule) (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Sep. 28, 2019 | Sep. 27, 2019 |
Operating Lease After Adoption of 842 | |||
Fiscal 2021 | $ 18,098 | ||
Fiscal 2022 | 14,868 | ||
Fiscal 2023 | 13,299 | ||
Fiscal 2024 | 12,718 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Five | 8,898 | ||
Thereafter | 22,484 | ||
Total undiscounted lease payments | 90,365 | $ 56,823 | |
Less: imputed interest | (9,228) | ||
Total lease liabilities | $ 81,137 | $ 64,600 | |
Operating leases | |||
Remainder of Fiscal 2020 | 17,231 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 9,329 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 7,191 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 6,218 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 4,499 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | $ 12,355 |
Leases (Maturities of Lessor Le
Leases (Maturities of Lessor Lease Payments Schedule) (Details) $ in Thousands | Sep. 25, 2020USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
Fiscal 2021 | $ 3,393 |
Fiscal 2022 | 3,354 |
Fiscal 2023 | 1,821 |
Fiscal 2024 | 78 |
Thereafter | 346 |
Total undiscounted cash flows | 12,353 |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |
Remainder of Fiscal 2020 | 1,605 |
Fiscal 2021 | 1,605 |
Fiscal 2022 | 1,603 |
Fiscal 2023 | 796 |
Fiscal 2024 | 395 |
Thereafter | 395 |
Total undiscounted cash flows | 6,399 |
Less: present value of lease payments (recognized as lease receivables) | (4,821) |
Difference | 1,578 |
Lessor, Operating Lease, Payments to be Received, Next Rolling Twelve Months | $ 3,361 |
Goodwill & Intangible Assets (D
Goodwill & Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Acquired During Period | $ 0 | $ 9,367 | |
Goodwill [Roll Forward] | |||
Goodwill | 334,829 | 327,982 | |
Goodwill, Translation and Purchase Accounting Adjustments | 2,116 | (2,520) | |
Goodwill | 336,945 | 334,829 | $ 327,982 |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | 430,346 | 425,705 | |
Accumulated Amortization | (277,915) | (244,814) | |
Net | 152,431 | 180,891 | |
Amortization of intangible assets | 29,500 | 29,700 | $ 26,500 |
Acquired patents and technology | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | 342,637 | 338,075 | |
Accumulated Amortization | (206,123) | (176,867) | |
Net | 136,514 | 161,208 | |
Payments to acquire intangible assets | $ 2,900 | $ 27,300 | |
Weighted-average useful life | 14 years | 7 years 10 months 24 days | |
Customer relationships | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | $ 64,740 | $ 64,728 | |
Accumulated Amortization | (49,062) | (45,510) | |
Net | 15,678 | 19,218 | |
Other intangibles | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | 22,969 | 22,902 | |
Accumulated Amortization | (22,730) | (22,437) | |
Net | $ 239 | $ 465 |
Goodwill & Intangible Assets -
Goodwill & Intangible Assets - Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Sep. 27, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2016 | $ 30,913 | |
2017 | 28,307 | |
2018 | 23,929 | |
2019 | 21,899 | |
2020 | 6,845 | |
Thereafter | 40,538 | |
Net | $ 152,431 | $ 180,891 |
Stockholders' Equity And Stoc_3
Stockholders' Equity And Stock-Based Compensation (Narrative) (Details) - USD ($) | Dec. 15, 2018 | Dec. 15, 2017 | Dec. 15, 2016 | Dec. 15, 2015 | Jun. 28, 2013 | Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | Oct. 31, 2010 | Mar. 28, 2014 | Jul. 31, 2019 | Jul. 25, 2018 | Jan. 25, 2017 | Oct. 31, 2014 | Feb. 29, 2012 | Jul. 31, 2011 | Jul. 31, 2010 | Nov. 30, 2009 |
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Options outstanding to purchase | 7,201,000 | |||||||||||||||||
Percentage of vesting per year | 50.00% | |||||||||||||||||
Estimated forfeiture rate, percent | 9.74% | 9.78% | 9.91% | |||||||||||||||
Stock authorized for repurchase | $ 2,000,000,000 | $ 250,000,000 | ||||||||||||||||
Remaining authorization to purchase additional shares | $ 187,000,000 | |||||||||||||||||
Class A Common Stock [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Common stock, shares authorized (shares) | 500,000,000 | 500,000,000 | ||||||||||||||||
Common stock, shares issued (shares) | 64,167,725 | 63,911,270 | ||||||||||||||||
Class B Common Stock [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Common stock, shares authorized (shares) | 500,000,000 | 500,000,000 | ||||||||||||||||
Common stock, shares issued (shares) | 36,128,720 | 36,229,820 | ||||||||||||||||
2005 Stock Plan. [Member] | Class A Common Stock [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Shares authorized under plan | 55,000,000 | |||||||||||||||||
Options vested and exercisable | 4,026,000 | |||||||||||||||||
Options outstanding to purchase | 6,599,000 | |||||||||||||||||
Awards Granted Under 2005 Stock Plan Prior To February 2011 [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Terms for issuance of stock | 2 | |||||||||||||||||
Awards Granted Under 2005 Stock Plan From February 2011 [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Terms for issuance of stock | 1.6 | |||||||||||||||||
Employee Stock Purchase Plan [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Percentage of compensation withheld by employees to purchase common stock | 10.00% | |||||||||||||||||
Common stock purchase price determined over percentage of closing price | 15.00% | |||||||||||||||||
Employee Stock Purchase Plan [Member] | Class A Common Stock [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Maximum value of common stock available for eligible employees | $ 25,000 | |||||||||||||||||
Maximum number of common stock available for eligible employees | 1,000 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Period | 6 months | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Look Back Commencement Period | 1 year | |||||||||||||||||
Additional Stock Approved [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Stock authorized for repurchase | $ 350,000,000 | $ 350,000,000 | $ 200,000,000 | $ 200,000,000 | $ 100,000,000 | $ 250,000,000 | $ 300,000,000 | |||||||||||
Employee Stock Option [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Stock options expected to vest | $ 23,800,000 | |||||||||||||||||
Employee stock options expected to be recognized over a weighted-average period | 2 years 2 months 12 days | |||||||||||||||||
Employee Stock Option [Member] | Options Granted From June 2008 [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Options vesting period | 36 months | 4 years | ||||||||||||||||
Percentage of stock option becoming exercisable subjected to date of grant | 25.00% | |||||||||||||||||
Performance-Based Stock Options [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Options vesting period | 3 years | |||||||||||||||||
Performance-Based Stock Options [Member] | Minimum [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Percentage Of target award | 0.00% | |||||||||||||||||
Performance-Based Stock Options [Member] | Maximum [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Percentage Of target award | 125.00% | |||||||||||||||||
Restricted Stock Units [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Stock options expected to vest | $ 121,800,000 | |||||||||||||||||
Employee stock options expected to be recognized over a weighted-average period | 2 years 3 months 18 days | |||||||||||||||||
Performance-Based Restricted Stock Units [Member] | Minimum [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Percentage Of target award | 0.00% | |||||||||||||||||
Performance-Based Restricted Stock Units [Member] | Maximum [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Percentage Of target award | 200.00% | |||||||||||||||||
Executive Officer [Member] | Performance-Based Stock Options [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Percentage Of target award | 125.00% | 125.00% | 125.00% | 125.00% | 125.00% | |||||||||||||
Grants in Period, Gross | 241,100 | 264,000 | 276,199 | |||||||||||||||
Number of Exercisable Options | 301,375 | 330,000 | 345,248 | 994,455 | ||||||||||||||
Options vested and exercisable | 334,623 | |||||||||||||||||
Options outstanding to purchase | 726,639 | |||||||||||||||||
Executive Officer [Member] | Performance-Based Restricted Stock Units [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Percentage Of target award | 200.00% | |||||||||||||||||
Number of Exercisable Options | 124,000 | |||||||||||||||||
Options outstanding to purchase | 62,000 | |||||||||||||||||
Employee and Officer [Member] | Restricted Stock Units [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Options vesting period | 4 years | |||||||||||||||||
Awards Granted Prior to November 2010 [Member] | Director [Member] | Restricted Stock Units [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Options vesting period | 3 years | 1 year | ||||||||||||||||
Awards Granted After November 2010 [Member] | Director [Member] | Restricted Stock Units [Member] | ||||||||||||||||||
Stockholders' Equity And Stock-Based Compensation [Line Items] | ||||||||||||||||||
Options vesting period | 2 years |
Stockholders' Equity And Stoc_4
Stockholders' Equity And Stock-Based Compensation (Summary Of Stock Options Issued To Officers, Directors, And Employees Under 2000 Stock Incentive Plan And 2005 Stock Plan) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 15, 2018 | Dec. 15, 2017 | Dec. 15, 2016 | Jun. 28, 2013 | Sep. 25, 2020 | Dec. 15, 2015 |
Shares | ||||||
Options outstanding at September 27, 2019 | 7,201,000 | |||||
Grants | 1,150,000 | |||||
Exercises | (1,671,000) | |||||
Forfeitures and cancellations | (81,000) | |||||
Options vested and expected to vest at September 25, 2020 | 6,345,000 | |||||
Weighted-Average Exercise Price | ||||||
Options outstanding at September 27, 2019 | $ 48.03 | |||||
Grants | 67.77 | |||||
Exercises | 40.16 | |||||
Forfeitures and cancellations | 62.20 | |||||
Options outstanding at September 25, 2020 | 53.30 | |||||
Options vested and expected to vest at September 25, 2020 | 52.80 | |||||
Options exercisable at September 25, 2020 | $ 45.98 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Weighted Average Remaining Contractual Life, Options vested and expected to vest at September 28, 2012 | 6 years 1 month 6 days | |||||
Weighted Average Remaining Contractual Life, Options exercisable | 5 years 2 months 12 days | |||||
Aggregate Intrinsic Value, Options outstanding | $ 80,636 | |||||
Aggregate Intrinsic Value, Options vested and expected to vest | 80,486 | |||||
Aggregate Intrinsic Value, Options exercisable | $ 76,557 | |||||
Year End Stock Price | $ 64.99 | |||||
Two Thousand Five Stock Plan Member | Common Class A [Member] | ||||||
Shares | ||||||
Options outstanding at September 25, 2020 | 6,599,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Weighted Average Remaining Contractual Life, Options outstanding | 6 years 2 months 12 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 4,026,000 | |||||
Awards Granted Under 2005 Stock Plan Prior To February 2011 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Terms for issuance of stock | 2 | |||||
Awards Granted Under 2005 Stock Plan From February 2011 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Terms for issuance of stock | 1.6 | |||||
Employee Stock Option [Member] | Options Granted From June 2008 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Options maximum vesting period, months | 36 months | 4 years | ||||
Share Based Compensation Arrangement By Share Based Payment Award Options Becoming Exercisable | 25.00% | |||||
Performance-Based Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Options maximum vesting period, months | 3 years | |||||
Performance-Based Stock Options [Member] | Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants in Period, Gross | 241,100 | 264,000 | 276,199 | |||
Shares | ||||||
Options outstanding at September 25, 2020 | 726,639 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 334,623 |
Stockholders' Equity And Stoc_5
Stockholders' Equity And Stock-Based Compensation (Summary Of Restricted Stock Units Issued To Officers, Directors, And Employees Under 2005 Stock Incentive Plan) (Details) shares in Thousands | 12 Months Ended |
Sep. 25, 2020$ / sharesshares | |
Shares | |
Non-vested at September 27, 2019 | shares | 2,805 |
Granted | shares | 1,395 |
Vested | shares | (1,078) |
Forfeitures | shares | (143) |
Non-vested at September 25, 2020 | shares | 2,979 |
Weighted-Average Grant Date Fair Value | |
Non-vested at September 27, 2019 | $ / shares | $ 58.84 |
Granted | $ / shares | 65.76 |
Vested | $ / shares | 52.71 |
Forfeitures | $ / shares | 61.16 |
Non-vested at September 25, 2020 | $ / shares | $ 62.70 |
Stockholders' Equity And Stoc_6
Stockholders' Equity And Stock-Based Compensation (RSU Vest Date Fair Value) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |||
Restricted stock units - vest date fair value | $ 72,426 | $ 69,956 | $ 64,755 |
Stockholders' Equity And Stoc_7
Stockholders' Equity And Stock-Based Compensation (Schedule Of Fair Value Of Stock-Based Awards Estimated Using Weighted-Average Assumptions) (Details) | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |||
Expected life (in years) | 4 years 10 months 28 days | 4 years 10 months 24 days | 5 years 21 days |
Risk-free interest rate | 1.60% | 2.70% | 2.20% |
Expected stock price volatility | 24.20% | 22.90% | 22.60% |
Dividend yield | 1.30% | 1.10% | 1.10% |
Stockholders' Equity And Stoc_8
Stockholders' Equity And Stock-Based Compensation (Summary Of Weighted-Average Fair Value Of Stock Options Granted And Total Intrinsic Value Of Stock Options Exercised) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |||
Weighted-average fair value at date of grant | $ 13.76 | $ 14.16 | $ 13.19 |
Intrinsic value of options exercised | $ 47,267 | $ 33,226 | $ 63,973 |
Stockholders' Equity And Stoc_9
Stockholders' Equity And Stock-Based Compensation (Forfeiture Rates) (Details) | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Stockholders' Equity And Stock-Based Compensation [Abstract] | |||
Estimated forfeiture rate, percent | 9.74% | 9.78% | 9.91% |
Stockholders' Equity And Sto_10
Stockholders' Equity And Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense By Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||
Allocated Share-based Compensation Expense | $ 86,628 | $ 76,580 | $ 71,249 |
Share based compensation expense | 86,628 | 76,580 | 71,249 |
Benefit from income taxes | (14,090) | (12,884) | (12,595) |
Recognized tax benefit from the exercise of ISO and ESPP | 409 | 353 | 577 |
Allocated Share-based Compensation Expense, Net of Tax | 72,538 | 63,696 | 58,654 |
Stock Option [Member] | |||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||
Share based compensation expense | 16,718 | 17,742 | 21,083 |
Restricted Stock Units [Member] | |||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||
Share based compensation expense | 65,235 | 54,650 | 46,162 |
Employee Stock Purchase Plan [Member] | |||
Stockholders' Equity And Stock-Based Compensation [Line Items] | |||
Share based compensation expense | $ 4,675 | $ 4,188 | $ 4,004 |
Stockholders' Equity And Sto_11
Stockholders' Equity And Stock-Based Compensation (Schedule of Stock-Based Compensation By Classification) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Recognized tax benefit from the exercise of ISO and ESPP | $ 409 | $ 353 | $ 577 |
Stock-based compensation expense | 86,628 | 76,580 | 71,249 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 14,090 | 12,884 | 12,595 |
Allocated Share-based Compensation Expense, Net of Tax | 72,538 | 63,696 | 58,654 |
Cost of products and services [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 2,072 | 1,710 | 1,574 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 25,634 | 23,191 | 19,515 |
Sales and marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 31,915 | 28,137 | 24,997 |
General and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 27,007 | $ 23,542 | $ 25,163 |
Stockholders' Equity And Sto_12
Stockholders' Equity And Stock-Based Compensation (Stock Repurchase) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | Jul. 31, 2019 | Jul. 25, 2018 | Jan. 25, 2017 | Oct. 31, 2014 | Feb. 29, 2012 | Jul. 31, 2011 | Jul. 31, 2010 | Nov. 30, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 2,000,000 | $ 2,000,000 | $ 250,000 | ||||||||||||
Shares repurchased (in shares) | 642,696 | 474,340 | 1,015,481 | 432,042 | 2,564,559 | ||||||||||
Cost | $ 44,989 | $ 27,081 | $ 71,669 | $ 30,003 | $ 173,742 | $ 340,585 | $ 150,470 | ||||||||
Average Price Paid per Share (in dollars per share) | $ 70 | $ 57.09 | $ 70.57 | $ 69.44 | $ 70 | ||||||||||
Additional Stock Approved [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 350,000 | $ 350,000 | $ 200,000 | $ 200,000 | $ 100,000 | $ 250,000 | $ 300,000 |
Stockholders' Equity And Sto_13
Stockholders' Equity And Stock-Based Compensation Stockholders' Equity And Stock- Based Compensation - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 04, 2020 | Nov. 12, 2020 | Aug. 26, 2020 | Aug. 03, 2020 | May 27, 2020 | May 04, 2020 | Feb. 20, 2020 | Jan. 29, 2020 | Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Dividends Payable [Line Items] | ||||||||||||
Cash dividend declared per common share | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.88 | $ 0.79 | $ 0.67 | ||||||
Dividends | $ 22.1 | $ 22.1 | $ 22.2 | |||||||||
Subsequent Event [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Cash dividend declared per common share | [1] | $ 0.22 | ||||||||||
Dividends | [1] | $ 22.1 | ||||||||||
[1] | The dividend payment amount is estimated based on the number of shares of our Class A and Class B common stock that we estimate will be outstanding as of the Record Date. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 25, 2020 | Sep. 27, 2019 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | $ (20,625) | $ (15,832) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (123) | 4,955 | ||
Income tax effect - benefit/(expense) | 646 | (402) | ||
Net of tax | 6,651 | (4,947) | ||
Realized gains/(losses) | [1] | 4,045 | 133 | |
Income tax effect - benefit/(expense) | [2] | (665) | 21 | |
Net of tax | 3,380 | 154 | ||
Net current-period other comprehensive income/(loss) | 10,031 | (4,793) | ||
Ending Balance | (10,594) | (20,625) | ||
Investment Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 2,198 | (2,948) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (5,393) | 5,131 | ||
Income tax effect - benefit/(expense) | (87) | 37 | ||
Net of tax | (5,480) | 5,168 | ||
Realized gains/(losses) | [1] | 4,939 | (43) | |
Income tax effect - benefit/(expense) | [2] | (839) | 21 | |
Net of tax | 4,100 | (22) | ||
Net current-period other comprehensive income/(loss) | (1,380) | 5,146 | ||
Ending Balance | 818 | 2,198 | ||
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 5,270 | (176) | ||
Income tax effect - benefit/(expense) | (581) | |||
Net of tax | 4,689 | (176) | ||
Realized gains/(losses) | (894) | [1] | 176 | |
Income tax effect - benefit/(expense) | 174 | |||
Net of tax | (720) | 176 | ||
Net current-period other comprehensive income/(loss) | 3,969 | |||
Ending Balance | 3,969 | |||
Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (22,823) | (12,884) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | [1] | 7,420 | (9,500) | |
Income tax effect - benefit/(expense) | 22 | (439) | ||
Net of tax | 7,442 | (9,939) | ||
Net current-period other comprehensive income/(loss) | 7,442 | (9,939) | ||
Ending Balance | $ (15,381) | $ (22,823) | ||
[1] | Realized gains or losses, if any, from the sale of our AFS investment securities or from foreign currency translation adjustments are included within other income/expense, net in our consolidated statements of operations | |||
[2] | The income tax benefit or expense is included within provision for income taxes in our consolidated statements of operations. |
Per Share Data (Details)
Per Share Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Net income attributable to Dolby Laboratories, Inc. | $ 26,829 | $ 67,285 | $ 88,496 | $ 48,753 | $ 43,918 | $ 39,574 | $ 73,440 | $ 98,219 | $ 231,363 | $ 255,151 | $ 41,746 |
Weighted Average Number of Shares Outstanding, Basic | 100,473 | 100,593 | 100,854 | 100,336 | 100,481 | 101,218 | 102,141 | 102,677 | 100,564 | 101,629 | 103,377 |
Potential common shares from options to purchase Class A and Class B common stock | 1,400 | 1,922 | 2,370 | ||||||||
Potential common shares from restricted stock units | 941 | 1,021 | 1,231 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 102,722 | 102,075 | 102,773 | 103,078 | 102,945 | 103,717 | 104,587 | 106,130 | 102,944 | 104,572 | 106,978 |
Basic (usd per share) | $ 0.27 | $ 0.67 | $ 0.88 | $ 0.49 | $ 0.44 | $ 0.39 | $ 0.72 | $ 0.96 | $ 2.30 | $ 2.51 | $ 0.40 |
Net income per share attributable to Dolby Laboratories, Inc. - Diluted | $ 0.26 | $ 0.66 | $ 0.86 | $ 0.47 | $ 0.43 | $ 0.38 | $ 0.70 | $ 0.93 | $ 2.25 | $ 2.44 | $ 0.39 |
Incremental Common Shares Attributable To Employee Stock Purchase Plan | 39 | 0 | 0 | ||||||||
Employee Stock [Member] | |||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Anti-dilutive securities, excluded from calculations | 1 | 0 | 0 | ||||||||
Employee Stock Option [Member] | |||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Anti-dilutive securities, excluded from calculations | 3,209 | 2,340 | 1,043 | ||||||||
Restricted Stock Units [Member] | |||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Anti-dilutive securities, excluded from calculations | 2 | 1 | 6 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Tax Credit Carryforward [Line Items] | ||||
Foreign earnings repatriated | $ 300,000 | |||
Undistributed earnings of foreign subsidiaries | 244,000 | |||
Net operating loss carryovers for federal tax purposes | 4,500 | |||
Net operating loss carryovers for California tax purposes | 9,000 | |||
NOL's not subject to expiration | 9,800 | |||
R&D tax credit carryforwards | 6,900 | |||
Valuation allowance, deferred tax assets, california | 25,800 | |||
Valuation allowance, deferred tax assets, foreign | $ 4,600 | |||
Effective tax rate | 3.40% | 9.50% | 78.50% | |
Provision for income taxes | $ 8,096 | $ 26,802 | $ 154,069 | |
Unrecognized tax benefits, gross | 60,691 | 108,539 | $ 102,009 | $ 98,665 |
Unrecognized tax benefits if recognized, would affect our effective tax rate | 42,000 | |||
Estimated decrease in unrecognized tax benefits due to lapse in statute of limitations | 24,000 | |||
Increase in interest expense for current tax provision | (6,300) | $ 3,500 | ||
Foreign Tax Credit Carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 8,500 | |||
California Research Tax Credit Carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 34,700 | |||
Research Tax Credit Carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | $ 2,600 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income Before Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ 32,426 | $ 60,500 | $ 27,819 | ||||||||
Foreign | 207,289 | 221,807 | 168,555 | ||||||||
Income before income taxes | $ 34,492 | $ 39,990 | $ 110,779 | $ 54,454 | $ 56,251 | $ 41,800 | $ 110,002 | $ 74,254 | $ 239,715 | $ 282,307 | $ 196,374 |
Income Taxes (Schedule Of Provi
Income Taxes (Schedule Of Provision For Income Taxes ) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Current: | |||
Federal | $ (48,517) | $ 14,144 | $ 40,624 |
State | 735 | 394 | 333 |
Foreign | 61,153 | 64,335 | 59,383 |
Total current | 13,371 | 78,873 | 100,340 |
Deferred: | |||
Federal | (4,674) | (55,793) | 43,377 |
State | (111) | 1,007 | 17,484 |
Foreign | (490) | 2,715 | (7,132) |
Total deferred | (5,275) | (52,071) | 53,729 |
Provision for income taxes | $ 8,096 | $ 26,802 | $ 154,069 |
Income Taxes (Summary Of Tax Ef
Income Taxes (Summary Of Tax Effects Of The Temporary Differences Between Carrying Amounts And Amounts Used For Tax) (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Sep. 27, 2019 |
Income Tax Disclosure [Abstract] | ||
Investments | $ 1,899 | $ 2,099 |
Inventories | 6,863 | 4,041 |
Net operating loss | 3,450 | 2,050 |
Accrued expenses | 13,839 | 13,917 |
Stock-based compensation | 17,397 | 17,189 |
Revenue recognition | 4,374 | 4,410 |
Depreciation and amortization | 45,572 | 19,988 |
Lease liability | 17,655 | 0 |
Research and development credits | 31,795 | 28,777 |
Foreign tax credits | 12,161 | 10,777 |
Deferred Tax Assets, Unrealized Currency Losses | 9,788 | 33,357 |
Other | 4,765 | 4,705 |
Total gross deferred income tax assets | 169,558 | 141,310 |
Less: valuation allowance | (30,416) | (24,884) |
Total deferred income tax assets | 139,142 | 116,426 |
Right of use asset | (17,360) | 0 |
Intangibles | (2,901) | (2,351) |
Deferred income tax assets, net | 118,881 | $ 114,075 |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 9,800 | |
Deferred Tax Assets, Tax Credit Carryforwards, Research | $ 6,900 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Federal Statutory Tax Rate To Our Effective Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory rate | 21.00% | 21.00% | 24.60% | |
State income taxes, net of federal effect | 0.20% | 0.20% | 0.70% | |
Stock-based compensation expense rate | (5.20%) | |||
Stock-based compensation expense rate | (2.70%) | (1.90%) | ||
Research and development tax credits | (3.00%) | (4.70%) | (4.00%) | |
Tax exempt interest | (2.20%) | (0.70%) | 0.00% | |
U.S. tax on foreign entities | 3.10% | 0.60% | 0.00% | |
Foreign rate differential | (1.80%) | (4.40%) | (9.40%) | |
Audit settlements | (12.90%) | 3.40% | 3.70% | |
Tax Act | 0.00% | (7.60%) | 53.30% | |
Change in Valuation Allowance | 0.00% | 1.50% | 8.30% | |
Other | 1.70% | 2.10% | 6.50% | |
Effective tax rate | 3.40% | 9.50% | 78.50% | |
Unrecognized Tax Benefits | $ 60,691 | $ 108,539 | $ 102,009 | $ 98,665 |
Unrecognized tax benefits if recognized, would affect our effective tax rate | $ 42,000 |
Income Taxes (Aggregate Changes
Income Taxes (Aggregate Changes In Balance Of Gross Unrecognized Tax Benefits, Excluding Interest And Penalties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits if recognized, would affect our effective tax rate | $ 42,000 | ||
Estimated decrease in unrecognized tax benefits due to lapse in statute of limitations | 24,000 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits, Beginning Balance | 108,539 | $ 102,009 | $ 98,665 |
Increases in balances related to tax positions taken during prior years | 5,504 | 115 | 0 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 0 | 0 | (2,209) |
Increases in balances related to tax positions taken during the current year | 7,509 | 6,822 | 9,580 |
Settlements | (37) | 0 | (130) |
Lapse of statute of limitations | (60,824) | (407) | (3,897) |
Unrecognized Tax Benefits, Ending Balance | $ 60,691 | $ 108,539 | $ 102,009 |
Income Taxes (Interest and Pena
Income Taxes (Interest and Penalties on Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Sep. 27, 2019 |
Income Tax Disclosure [Abstract] | ||
Accrued interest | $ 4,017 | $ 10,315 |
Accrued penalties | 45 | 44 |
Total | $ 4,062 | $ 10,359 |
Restructuring (Summary of Chang
Restructuring (Summary of Changes in Restructuring Accruals) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 15,851 | ||
Restructuring charges | 1,821 | $ 36,558 | $ (446) |
Cash payments | (22,194) | ||
Non-cash charges | 4,522 | ||
Restructuring reserve, ending balance | 0 | 15,851 | |
Employee Severance [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 128 | ||
Restructuring charges | 0 | ||
Cash payments | (75) | ||
Non-cash charges | (53) | ||
Restructuring reserve, ending balance | 0 | 128 | |
Facility Closing [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 15,723 | ||
Restructuring charges | 1,821 | ||
Cash payments | (22,119) | ||
Non-cash charges | 4,575 | ||
Restructuring reserve, ending balance | 0 | 15,723 | |
Write-Off Of Property And Equipment [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 0 | ||
Restructuring charges | 0 | ||
Cash payments | 0 | ||
Non-cash charges | 0 | ||
Restructuring reserve, ending balance | 0 | 0 | |
Other Restructuring [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 0 | ||
Restructuring charges | 0 | ||
Cash payments | 0 | ||
Non-cash charges | 0 | ||
Restructuring reserve, ending balance | $ 0 | 0 | |
2019 Restructuring Plan [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | $ 36,600 |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) | 9 Months Ended | 12 Months Ended |
Jun. 28, 2013 | Sep. 25, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Term of agreement | 20 years | 15 years |
Commitments And Contingencies_3
Commitments And Contingencies (Schedule Of Contractual Obligations And Commitments) (Details) $ in Thousands | Sep. 25, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Naming rights, Fiscal 2021 | $ 7,915 |
Naming rights, Fiscal 2022 | 8,015 |
Naming rights, Fiscal 2023 | 8,116 |
Naming rights, Fiscal 2024 | 8,219 |
Naming rights, Fiscal 2025 | 8,322 |
Naming rights, Thereafter | 61,277 |
Naming rights, Total | 101,864 |
Purchase obligations | |
Purchase Obligation, Fiscal 2021 | 17,305 |
Purchase Obligation, Fiscal 2022 | 2,991 |
Purchase Obligation, Fiscal 2023 | 139 |
Purchase Obligation, Fiscal 2024 | 0 |
Purchase Obligation, Fiscal 2025 | 0 |
Purchase Obligation, Thereafter | 0 |
Unrecorded Unconditional Purchase Obligation | 20,435 |
Donation commitments | |
Donation commitments, Fiscal 2021 | 4,803 |
Donation commitments, Fiscal 2022 | 155 |
Donation commitments, Fiscal 2023 | 155 |
Donation commitments, Fiscal 2024 | 155 |
Donation commitments, Fiscal 2025 | 155 |
Donation commitments, Thereafter | 1,002 |
Donation commitments, Total | 6,425 |
Total | |
Total, due in Fiscal 2021 | 30,023 |
Total, due in Fiscal 2022 | 11,161 |
Total, due in Fiscal 2023 | 8,410 |
Total, due in Fiscal 2024 | 8,374 |
Total, due in Fiscal 2025 | 8,477 |
Total, due Thereafter | 62,279 |
Total due | $ 128,724 |
Operating Segments and Geogra_3
Operating Segments and Geographic Data (Revenue By Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Document Period End Date | Sep. 25, 2020 | ||||||||||
Total revenue | $ 271,191 | $ 246,909 | $ 351,815 | $ 291,877 | $ 298,827 | $ 302,159 | $ 338,258 | $ 302,376 | $ 1,161,792 | $ 1,241,620 | $ 1,054,600 |
United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenue | 353,235 | ||||||||||
International | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenue | $ 701,365 |
Operating Segments and Geogra_4
Operating Segments and Geographic Data (Schedule Of Concentration Of Revenue From Individual Geographic Regions) (Details) | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Revenue from External Customer [Line Items] | |||
Document Period End Date | Sep. 25, 2020 | ||
Concentration of revenue from individual geographic regions | 100.00% | 100.00% | 100.00% |
United States | |||
Revenue from External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 40.00% | 36.00% | 33.00% |
South Korea [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 12.00% | 12.00% | 17.00% |
China [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 20.00% | 20.00% | 15.00% |
Japan [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 9.00% | 11.00% | 13.00% |
Europe [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 10.00% | 12.00% | 12.00% |
Taiwan [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 2.00% | 4.00% | 3.00% |
Other [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration of revenue from individual geographic regions | 7.00% | 5.00% | 7.00% |
Operating Segments and Geogra_5
Operating Segments and Geographic Data (Schedule Of Long-Lived Assets, Net Of Accumulated Depreciation, By Geographic Region) (Details) - USD ($) $ in Thousands | Sep. 25, 2020 | Sep. 27, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived tangible assets, net of accumulated depreciation | $ 541,963 | $ 537,432 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 453,889 | 460,370 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 88,074 | $ 77,062 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Related Party Transaction [Line Items] | |||
Restructuring charges | $ 1,821 | $ 36,558 | $ (446) |
Related party rent expense | 126 | 16,360 | 3,483 |
Distribution to controlling interest | $ 283 | $ 1,015 | $ 1,022 |
Dolby Properties Brisbane, LLC | |||
Related Party Transaction [Line Items] | |||
Ownership interest (percent) | 49.00% | ||
Dolby Properties Burbank, LLC | |||
Related Party Transaction [Line Items] | |||
Ownership interest (percent) | 49.00% | ||
Dolby Properties, LP | |||
Related Party Transaction [Line Items] | |||
Ownership interest (percent) | 10.00% | ||
Principal Stockholder | 100 Potrero Avenue | |||
Related Party Transaction [Line Items] | |||
Restructuring charges | $ 33,500 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 28, 2019 | Sep. 25, 2020 | Sep. 27, 2019 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |||
Document Period End Date | Sep. 25, 2020 | ||
Retirement plan expenses | $ 23,439 | $ 25,257 | $ 23,375 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (unaudited) (Schedule Of Selected Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Revenue from contract with customer | $ 1,161,792 | $ 1,241,620 | |||||||||
Total revenue | $ 271,191 | $ 246,909 | $ 351,815 | $ 291,877 | $ 298,827 | $ 302,159 | $ 338,258 | $ 302,376 | 1,161,792 | 1,241,620 | $ 1,054,600 |
Cost of revenue | 42,465 | 29,888 | 36,830 | 37,315 | 45,960 | 39,690 | 36,575 | 38,629 | 146,498 | 160,854 | 127,562 |
Gross margin | 228,726 | 217,021 | 314,985 | 254,562 | 252,867 | 262,469 | 301,683 | 263,747 | 1,015,294 | 1,080,766 | 927,038 |
Income/(loss) before taxes and controlling interest | 34,492 | 39,990 | 110,779 | 54,454 | 56,251 | 41,800 | 110,002 | 74,254 | 239,715 | 282,307 | 196,374 |
Net income attributable to Dolby Laboratories, Inc. | $ 26,829 | $ 67,285 | $ 88,496 | $ 48,753 | $ 43,918 | $ 39,574 | $ 73,440 | $ 98,219 | $ 231,363 | $ 255,151 | $ 41,746 |
Net Income Per Share: | |||||||||||
Basic (usd per share) | $ 0.27 | $ 0.67 | $ 0.88 | $ 0.49 | $ 0.44 | $ 0.39 | $ 0.72 | $ 0.96 | $ 2.30 | $ 2.51 | $ 0.40 |
Diluted (usd per share) | $ 0.26 | $ 0.66 | $ 0.86 | $ 0.47 | $ 0.43 | $ 0.38 | $ 0.70 | $ 0.93 | $ 2.25 | $ 2.44 | $ 0.39 |
Weighted-average shares outstanding: | |||||||||||
Basic (shares) | 100,473 | 100,593 | 100,854 | 100,336 | 100,481 | 101,218 | 102,141 | 102,677 | 100,564 | 101,629 | 103,377 |
Diluted (shares) | 102,722 | 102,075 | 102,773 | 103,078 | 102,945 | 103,717 | 104,587 | 106,130 | 102,944 | 104,572 | 106,978 |
Licensing | |||||||||||
Revenue from contract with customer | $ 256,904 | $ 235,125 | $ 328,865 | $ 257,683 | $ 264,796 | $ 271,897 | $ 310,308 | $ 260,279 | $ 1,078,577 | $ 1,107,280 | $ 940,777 |
Product and service [Member] | |||||||||||
Revenue from contract with customer | $ 14,287 | $ 11,784 | $ 22,950 | $ 34,194 | $ 34,031 | $ 30,262 | $ 27,950 | $ 42,097 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 24, 2021 | Sep. 25, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Subsequent Events [Abstract] | ||||
Restructuring charges | $ 1,821 | $ 36,558 | $ (446) | |
Subsequent Event [Line Items] | ||||
Restructuring charges | $ 1,821 | $ 36,558 | $ (446) | |
2021 Restructuring Plan [Member] | Subsequent Event [Member] | ||||
Subsequent Events [Abstract] | ||||
Restructuring charges | $ 10,000 | |||
Subsequent Event [Line Items] | ||||
Restructuring charges | $ 10,000 |
Uncategorized Items - dlb-20200
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 634,368,000 |